Bashneft, one of Russia’s oil majors, explains a net profit drop in its 3Q IFRS report available on its website.

      Bashneft Group, comprising JSOC Bashneft, its subsidiaries and affiliates, released its unaudited consolidated financial statements for the third quarter of 2013 and the nine months ended September 30, 2013 prepared in accordance with International Financial Reporting Standards (IFRS).

      According to the statement, the Group’s revenue from sales during the nine months of 2013 grew 6.2 percent year-on-year to 417,054 million roubles. The increase follows bigger sales of oil and petroleum products and a favourable pricing environment.

      Within January-September 2013, adjusted EBITDA rose 1.1 percent year-on-year to reach 76,981 million roubles while the Group’s net income excluding minority interest was down 21.3 percent totalling 32,542 million roubles. “The decrease in net income was related to reclassification and subsequent revaluation of the Group’s financial investments in OJSC Belkamneft. On September 30, 2013 JSOC Bashneft divested OJSC Belkamneft by selling 500 ordinary shares of OJSC Belkamneft (38.46 percent of its authorized share capital) to a group of private investors for 6,469 million roubles,” reads the financials report.

      Bashneft ranks among the Top 10 Russian oil producers, and in the Top 5 oil refining companies. Oil production in 2012 reached 15.4 mln tonnes, oil resources at the end of 2012 equalled 2,006.8 mln barrels. It also operates three refineries with a total capacity of 24.1 million tonnes a year.

      In 2012, Bashneft joined an international project to explore, develop and produce oil at Block 12 (Iraq).

      Bashneft has been listed in Moscow since 2011 with 14 percent of its shares in free float and is planning a secondary offering as early as 2014, media reports say.

      The Russian Sistema group purchased a controlling stake in Bashneft in March 2009 for $2.5 billion.