Profit at Russian oil giant Tatneft drops by half

Tatneft’s net profit under Russian Accounting Standards (RAS) dropped by 45.5% year-over-year in the first quarter of 2025, falling to 37.29 billion rubles, according to the company’s financial disclosures. This represents a 1.8-fold decrease compared to the same period last year.

Quarterly revenue declined by 5.4% to 361.44 billion rubles, while the cost of sales rose 8.1% to 276.59 billion rubles. As a result, gross profit contracted by 32.8%, totaling 84.86 billion rubles.

Other expenses surged 2.4 times to 35.2 billion rubles, whereas other income declined by 44.5% to 3.95 billion rubles, further weighing on the company’s bottom line.

Following the earnings release, Tatneft’s shares reacted negatively. Common shares dropped by as much as 2.7% to 682.4 rubles, while preferred shares declined by 2.25% to 647.1 rubles. Losses later moderated, with declines easing to 2.1% and 1.95%, respectively, by 12:41 PM Moscow time.

Net profit under RAS is a critical metric for Tatneft, as it forms the basis for calculating interim dividends for the first half and third quarter.

According to analysts at BCS World of Investments, if the company allocates 75% of its Q1 net profit to dividends, shareholders can expect a payout of approximately 12 rubles per share for the quarter. This translates to a modest current dividend yield of 1.8%, which BCS considers relatively low. The firm maintains a “neutral” outlook on Tatneft’s stock.

For the full year 2024, Tatneft plans to distribute a total of 98.7 rubles per share in dividends, including a final dividend of 43.11 rubles per share. Shareholders will vote on the final 2024 dividend on May 22. If a quorum is not reached, a secondary meeting is scheduled for June 4.

Read more about Russia’s oil price troubles here.