Gutseriev: Russneft to pay off another $800 million of debt by the end of the year

Russneft, one of the ten Russian largest oil companies, will pay off another $800 million of its debt by the end of the year, the Head and one of the main owner of Russneft, Mikhail Gutseriev reported to journalists on Wednesday.

“We paid off $1.5 billion, another $800 million we will pay off at the expense of out profit, decrease of prime cost of the production and capital investments, and at the expense of launch of highly productive wells,” – Gutseriev said.

Earlier the Russneft’s Head reported that in 2012 the company mapped out to reduce its debt by $600 million, which made up roughly $5 billion as of beginning of the year. In 2011, Russneft decreased its debt by 15% - to $5.061 billion from $6.208 billion.

According to Gutseriev, in the current year, the company plans to earn more than $1billion and all these funds will be transferred to repayment and servicing of the debt.

According to the preliminary data of the account under IAS, published in February, in 2011, the net profit of Russneft was increased by 17% and made up $673 million, the proceeds – by 23% to $5.536 billion.

The gradual reduction in interest burden, according to Russneft, will allow it to send the released funds for investment projects - the growth of hydrocarbon production, geological exploration and development of gas projects.

http://www.oilru.com/news/314854/

Translated by Svetlana Kyrzhaly