On 30 April 2013 Rosneft publishes its consolidated IFRS financial statements for Q1 2013.

Operating and financial highlights

*TNK-BP financial and operational results are incorporated into reporting from the acquisition date up to the end of the reporting period (11 days).
** Excluding one-off effect from receipts under long term oil contracts of RUB 232 billion.

Rosneft President Igor Sechin commented on the results of Q1 2013: «The key event for Rosneft in the reporting period was the acquisition of 100% equity interest in TNK-BP. The Company has strengthened its leading positions in development of the Russian shelf and signed a number of significant long-term agreements on monetization of hydrocarbon production. Dynamic business development had a positive impact on our operational performance – sustainable production growth and building up our reserve base. We have maintained our solid financial position and will continue to work efficiently to increase the shareholder value and investment appeal of our company».

Hydrocarbon production (including production by fully and proportionally consolidated subsidiaries and share in production by affiliates) in Q1 2013 increased by 82.4% compared to Q1 2012 to 4,804 th. boepd. The increase in crude oil production was largely due to TNK-BP acquisition impact of 18.4 mln bbl. Excluding TNK-BP impact, daily production increased by 0.6% due to organic oil production growth at Vankor field driven mainly by the launch of new wells. Gas production reached 5.97 bcm, a 11.2% increase compared to the Q4 2012. Gas production increase of 0.53 bcm is largely due to TNK-BP Group acquisition impact. Excluding TNK-BP impact, gas production increased by 1.3%. Gas production increase in Q1 2013 was at Itera and Yuganskneftegas.

Throughput at Rosneft’s Russian and international refineries was 15.84 mln tonnes in Q1 of the year, inclusive TNK-BP acquired assets. Decrease by 0.4% in throughput is due to maintenance of crude oil distillation unit at Tuapse refinery (expected to be launched in June 2013), loading optimization of Komsomolsk and other refineries in winter period due to lower demand on petroleum products and also due to maintenance of Gelsenkirchen refinery in Q1 2013.

Revenues in Q1 2013 were up 2.5% at RUB 812 bln. Excluding acquisition impact, revenues decreased by 3.7% in comparison with Q4 2012 to RUB 763 bln, largely due to a seasonal decrease in sales volumes of petroleum products, determined by market dynamics, which was partially compensated by an increase of crude oil sales.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in Q1 2013 increased by 7.6% to RUB 156 bln. Excluding TNK-BP acquisition impact, positive influence on EBITDA was due to: (а) a seasonal decrease of exploration expenses, (b) a decrease of general administrative expenses, (c) partially offset by an increase of MET, excise tax rates and transportation tariffs. Procurement expenses and capital expenditures per unit are being reduced.

Rosneft’s Q1 2013 net profit amounted to RUB 102 bln, including TNK-BP acquisition impact in the amount of RUB 51 bln, in comparison with Q4 2012 net profit of RUB 62 bln. Q1 2012 net profit amounted to RUB 117 bln. Excluding TNK-BP assets operations from the acquisition date, net profit decrease was due to: (а) FOREX loss, (b) increase in net finance expenses, (c) was compensated by an increase in value of non-controlling share in OJSC Verkhnechonskneftegaz to its fair value.

Operational cash flow of the Company (excluding the impact of long-term advance payments for crude oil supplies and TNK-BP acquisition) increased by 8.8% to RUB 146 bln.

Rosneft Information Division
Tel.: +7 (495) 411 54 20
Fax: +7 (495) 411 54 21
www.rosneft.com
April 30, 2013

These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.