• HYDROCARBON PRODUCTION AMOUNTED TO 246.6 MLN TOE
• LIQUID HYDROCARBON PRODUCTION – 181.1 MLN TONS
• GAS PRODUCTION – 79.6 BCM
• 2P PRMS HYDROCARBON RESERVES – 11.5 BLN TOE, RRR – 122%, RESERVE LIFE – 49 YEARS  
• REVENUE – RUB 8,236 BLN
• EBITDA – RUB 2,173 BLN
• FREE CASH FLOW – RUB 700 BLN
• CAPEX – RUB 1,360 BLN

Rosneft Oil Company (hereinafter – Rosneft, the Company) announces its results for 12M 2025 prepared in accordance with the International Financial Reporting Standards (IFRS).

Commenting on the results for 12M 2025, Igor Sechin, Chairman of the Management Board and Chief Executive Officer of Rosneft stated:

"In 2025, the Russian oil industry found itself in the epicenter of a ‘perfect storm’, triggered by a combination of adverse market conditions, a challenging domestic macroeconomic environment, and a hostile geopolitical climate.

Despite these challenges, the industry continues to play the leading role in ensuring socio-economic development and generating Russian budget revenues. Its contribution stems not only from the mineral extraction tax and additional income tax, but also from other fiscal payments made by oil companies (corporate income tax, excise taxes on petroleum products, property tax, etc.). Furthermore, the budget benefits from a broad range of revenues generated by related industries such as metallurgy, mechanical engineering, oilfield services, construction, transport, electricity generation. Additional significant revenue sources include personal income tax and social security contributions from employees in these sectors, alongside dividends from oil and gas companies. Consequently, the oil industry’s total contribution to budget revenues is approximately twice the oil and gas revenue figure reported by the Ministry of Finance.

Given the scarcity of ruble liquidity, the industry essentially subsidizes the domestic market through foreign exchange earnings, which supports the stability of the ruble exchange rate and acts as a factor in curbing inflation.

The industry’s strategic importance makes it a primary target for sanctions pressure. In addition to US blocking sanctions on major oil companies, European pressure continues to mount on through embargoes and price caps. Systemic pressure on the key buyers of Russian energy resources is evidenced by sanctions against the tanker fleet and widespread insurance denials, which have caused insurance premiums to surge by tens of times. The heightened risks of vessel detention or seizure have exacerbated the situation. In March 2026, freight rates for transporting Russian oil from the Baltic Sea to India exceeded $20 per barrel – this represents a tenfold increase in logistics costs compared to early 2022, when delivery to traditional European markets averaged around $2 per barrel.

Furthermore, cross-border payments remain obstructed, as the Bank of Russia has yet to establish a sanctions-resilient settlement system. Consequently, Russian exporters and their counterparties have had to independently develop foreign trade settlement solutions. This has led to a manifold increase in the total payment and conversion costs compared to the pre-crisis level.

In addition to financial, logistical, and technological constraints, the industry now faces systemic threats from terrorist attacks on oil infrastructure facilities including refineries, storage facilities, filling stations, terminals, and oil pipelines.

The current market and geopolitical situation significantly impacted the Company's financial performance in the reporting year. Falling oil prices, widening discounts,  alongside the production restrictions under the OPEC+ agreement, systematic restrictions by Transneft on the acceptance of the crude oil into the pipeline system, and national currency appreciation, led to decline in sales revenue. Moreover, costs were driven upward by the growth in tariffs of natural monopolies, which outpaced inflation, and the increasing complexity of cross-border settlements and logistics. These factors collectively exerted downward pressure on EBITDA for 2025.

The Bank of Russia’s elevated high key rate is noteworthy, with its average level exceeding 19% in 2025. This resulted in a significant increase in debt servicing costs, which were more than four times higher in the reporting year than in 2020 despite comparable debt levels. The increase in the statutory corporate income tax rate put additional pressure on the net income. In Q4 20225, unlike other sector players, the Company did not have to recognize significant losses following the imposition of US blocking sanctions, thanks to prudent management decisions to proactively minimize its presence in unfriendly countries.

The market environment remains highly volatile this year. After two months of relatively low prices, the oil market reacted sharply to the escalation of the conflict between the United States and Iran and the subsequent disruption of shipping through the Strait of Hormuz. At the same time, the positive impact of rising oil prices on industry revenues should not be overstated, as it is largely offset by higher costs for freight, insurance, and currency conversion. The primary beneficiaries of the current price hike are, first and foremost, logistics, transport, insurance companies and financial institutions.

Under the current market conditions, the Company is prioritizing operational efficiency and cost optimization. The project portfolio undergoes continuous monitoring and ranking. During the reporting year, capital expenditures were slightly reduced, while the Company continued to generate free cash flow, which has remained positive for 22 consecutive quarters.

The Company’s business plan is based on conservative macroeconomic assumptions, including oil price of 45 dollars per barrel, and envisages debt burden reduction without the need for new borrowing.

Despite the negative external background, the interests of shareholders remain one of our main priorities - the Company has been continuously paying dividends since 1999. General meeting of shareholders held at the end of 2025 approved interim dividends of RUB 11.56 per share for 1H 2025. I should note that over the past year the number of our shareholders has grown by almost 170,000 to 1.67 million people."

Operational performance

Exploration and production

Production of liquid hydrocarbons in 2025 amounted to 181.1 mln tons (3.69 mln bpd), including 46.4 mln tons (+2,2% QoQ) in Q4 2025. The indicator performance was driven by the change in oil production quota in compliance with the decisions of the Russian Government.

Company's gas production in 2025 amounted to 79.6 bcm (1.33 mln boepd), including 21.3 bcm (+12,4% QoQ) in Q4 2025. The indicator performance was due to the scheduled preventive maintenance at the key assets. The Company’s primary goal for the near future is to maintain gas production at the current level.

As a result, the Company's hydrocarbon production in 2025 amounted to 246.6 mln toe (5.02 mln boepd)

In 2025, development drilling exceeded 11.8 mln meters, and over 3 th. new wells were commissioned, 74% of them were horizontal wells.

Rosneft completed 1.2 th. km of 2D seismic and 3.7 th. sq. km of 3D seismic onshore Russia. The Company completed testing of 49 exploratory wells with a success rate of 90%.

High exploration efficiency made it possible for the Company to discover 6 fields and 112 new hydrocarbon deposits in 2025 with 0.3 bln toe of АВ1С1+B2С2 reserves. As a result, Rosneft’s hydrocarbons reserves under the Russian classification amounted to 21.7 bln toe (АВ1С1+В2С2) at the end of 2025.

According to the reserves audit results under PRMS international classification (Petroleum Resources Management System), the Company's 2P hydrocarbon reserves amounted to 11.5 bln toe. The 2P reserves replacement ratio exceeds amounted to 122%, reserve life – 49 years.

Refining

The volume of oil refining in Russia in 2025 amounted to 75.7 mln tons. Decrease in the refining volume is attributable to the need for maintenance and repair works as well as to the optimization of refinery utilization amid the current pricing environment, logistics constraints and demand.

Rosneft continuously works to maintain a high level of reliability of its oil refining assets. In particular, the Company supplies the refinery process units with its proprietary catalysts, which are essential for the production of high-quality motor fuel. In 2025, more than 2.2 th. tons of catalysts were produced for hydrotreatment of diesel fuel and gasoline fractions, as well as protective layer catalysts. Rosneft subsidiaries also produced 140 tons of gasoline reforming catalysts and over 250 tons of catalysts for production of hydrogen, petrochemicals and adsorbents.

Sustainable supply of high-quality motor fuel to Russian consumers is one of Rosneft's key priorities. In 2025, 40.3 mln tons of petroleum products were supplied to the domestic market, including 12.3 mln tons of gasoline and 16.4 mln tons of diesel fuel.

Rosneft continues to actively participate of trading activities at the St. Petersburg International Mercantile Exchange. In the reporting year, 9.4 mln tons of gasoline and diesel fuel were sold on the exchange, the share of the Company's sales in the total exchange sales of these petroleum products exceeded 30%.

Financial performance

Against the background of lower oil prices and ruble appreciation, the Company's revenue¹ in 2025 decreased by 18.8% year-on-year, amounting to RUB 8,236 bln. At the same time, the rate of reduction in costs and expenses was less than that of the revenue, with one of the reasons being price pressure caused by the outpacing inflation indexation of tariffs by the natural monopolies. As a result, EBITDA in 2025 decreased to RUB 2,173 bln with an EBITDA margin of 26%.

In 2025 net income attributable to Rosneft shareholders amounted to RUB 293 bln. The indicator is still negatively affected by the high key rate of the Bank of Russia. In addition, growing rate of the profit tax, non-monetary and one-off factors negatively impacted on the indicator performance in the reporting period.

In 2025, capital expenditures amounted to RUB 1,360 bln, which is 5.7% lower year-on-year, due to the planned implementation of the investment program, primarily at the Upstream assets based on strict ranking and optimization of the investment projects portfolio. At the same time, free cash flow in the reporting period reached RUB 700 bln.

The net debt/EBITDA ratio at the end of 2025 amounted to 1,5х, which continues to remain at a level significantly below the minimum covenant under the loan agreements.

ESG

In the reporting period, the Company continued activities aimed at achieving sustainable development goals under the Rosneft-2030 Strategy.

Rosneft applies advanced technologies and state-of-the-art production methods to create a safe working environment and minimize the risk of work-related injuries and occupational illnesses. In 2025, the Lost Workday Injury Severity (LWIS) went down by 18%.

As a result of accident prevention measures taken, the number of incidents related to process safety at the Company’s subsidiaries sites decreased. Particularly in 2025 the frequency rate of process safety events (PSER-1) reduced by 50% compared to 2024.

The Сompany makes a significant contribution to the conservation of natural resources. In 2025, employees of the company's enterprises planted 8.1 million tree seedlings of various species during reforestation activities, and over the past five years – almost 46 million.

In 2025, Rosneft reduced the area of contaminated land by 15%, and the volume of oily waste by 33% under the corporate program for the elimination of environmental legacy.

In 2025, Rosneft confirmed its leading position in sustainable development in the Russian and global petroleum industry. Thus, the international World Benchmarking Alliance recognized Rosneft as the best Russian oil and gas company in four ratings dedicated to a fair energy transition, social initiatives and gender equality, as part of an assessment of the activities of 2,000 world's largest companies.

The largest international investment and consulting agency Institutional Shareholder Services also highly appreciated Rosneft's environmental protection activities, having included the Company in the group of leaders in the environmental rating. Russia's largest non-credit rating agency, RAEX, assigned Rosneft AA, a very high-level ESG rating.

Following the results of the annual review, the Moscow Stock Exchange included the Company's securities in new databases for calculating sustainable development indexes, including the index of climate sustainability of non-financial companies, the Moscow Stock Exchange-RAEX ESG balanced index and the group of Indexes of the Moscow Stock Exchange – Russian Union of Industrialists and Entrepreneurs.

¹ This includes sales revenue and income from associated organizations and joint ventures.

Information and Advertising Department
Rosneft
31 March 2026

These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not historical information is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by these forward-looking statements. We assume no obligation to adjust the data contained herein to reflect actual results, changes in underlying assumptions or factors affecting the forward-looking statements.