Rosneft Reports Lower Than Expected 81% Profit Rise

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Rosneft, the world’s largest listed oil producer, has reported a lower than expected 81 per cent annual rise in net profits in the third quarter and falling free cash flow thanks to a spending spree on acquisitions, the Financial Times reported. The Kremlin-controlled company said net profit rose to Rbs47bn ($792m) in the third quarter, thanks to a rise in global oil prices and an increase in production. But free cash flow fell 83 per cent to just Rbs8bn, because of higher spending and upstream expenses. Shares in the company were down 4.3 per cent by 5pm in Moscow, after opening higher. Rosneft said its ratio of assets to liabilities fell to 0.52 in the quarter, from 1.17 a year previously, after liabilities more than doubled to $60.4bn and assets fell slightly, following big investments in India, Iraqi Kurdistan and Venezuela, and increased spending on domestic projects. Read more. (Subscription required.)