Russia's Transneft Posts 26% Fall in 2020 Net Profit

MOSCOW (Reuters) — Russian oil pipeline monopoly Transneft's net profit fell by 26% last year to 133.2 billion roubles ($1.8 billion) as lower volumes of oil were transported amid global production cuts and the COVID-19 pandemic, the company said on Tuesday.

Revenues fell 10% to 962.4 billion roubles from 1.06 trillion roubles in 2019.

Transneft handles more than 90% of the oil produced in Russia, which cut output for the first time since 2008 last year to its lowest level since 2011.

The company plans to increase capital expenditure to 232 billion roubles this year after cutting it to 199 billion roubles in 2020, according to a company presentation.

It also expects its oil transportation volumes to be broadly flat in 2021 at 439.1 million tons (8.78 million barrels per day), compared to 442.2 million tons in 2020, which was a day longer.

It plans to raise revenues this year to 988.6 billion roubles, the presentation showed.

($1 = 75.8675 roubles)

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