Khudainatov joined Rosneft in 2008 and has been responsible for exploration, production and strategic projects including the huge east Siberian Vankor field. Prior to joining Rosneft he was general director of Severneftegaz, a subsidiary of OAO Gazprom, where he managed the development of the Yuzhno-Russkoye field, one the largest gas fields in Russia.
"Rosneft today is the leader of the Russian oil industry," said Rosneft's Chairman Igor Sechin, who is also Russia's first deputy prime minister. "I'm confident that Eduard Khudainatov has the experience and insights to lead the management team as Rosneft enters its next stage of development."
Rosneft outgoing Chief Executive Sergey Bogdanchikov has headed Rosneft since 1998 and saw the company through its initial public offering and the controversial acquisition of the production assets of bankrupted oil company Yukos. He has reportedly clashed at times with Sechin.
Rosneft produces around 2.2 million barrels of oil a day.
The net profit of Rosneft rose 37 percent in January-June to $5.048 billion compared to the same period last year, the company reported.
Rosneft revenues in the first six months of 2010 grew 57 percent to $30.192 billion. Figures are to U.S. Generally Accepted Accounting Principles.
The company said in a statement that its net profit had risen primarily due to an 8.6 percent growth in oil output, growing oil and oil product prices and also due to a growth of the company's more efficient sales.
The company's second quarter sales revenues grew five percent to $15.4 billion quarter-on-quarter.
Rosneft's Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) amounted to $9.2 billion in the first half of 2010, which is 56 percent higher year-on-year. The increase was tempered by the real strengthening of the ruble against the U.S. dollar, higher tax revenues and growth of the transportation tariffs, substantially exceeding inflation rates. In the second quarter of 2010, EBITDA rose seven percent to $4.7 billion, the highest since 2008.
Rosneft's free cash flow reached a record high of $2.8 billion in the second quarter of 2010, allowing a further reduction of the company’s net debt, which decreased to $15.8 billion. Net debt/EBITDA ratio stood at 0.94 at the end of the quarter.
Rosneft's average daily crude oil output, including output of the company's subsidiaries, increased by 8.8 percent year-on-year, to 2.315 million barrels per day. The growth was primarily provided by the Vankorskoye and Verkhnechonskoye fields in Eastern Siberia, as well as Samaraneftegaz and Udmurtneft fields, where Rosneft managed to increase output despite high level of reserve depletion.
The company’s success in cost control was muted by the transportation tariff increase and the tax burden. In the first half of 2010, transportation costs grew 40 percent year-on-year to $3.5 billion due to the transportation tariff increase of natural monopolies. The tax share in the company's overall revenues grew to 49 percent from 41 percent.
Eduard Khudainatov