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Rosneft is Russia's largest oil company by production volume and one of the largest oil producers in the world. The company is controlled by the state and grew to its present size mainly through acquisitions: almost every notable jump in its production is linked to the purchase of another company. The shares trade on the Moscow Exchange under the ticker ROSN.
As with other vertically integrated companies, the chain runs from the wellhead to the filling station: production, refining, marketing. But scale changes the nature of the business — at these volumes the company moves the country's industry statistics and becomes a direct participant in the state's energy policy.
Revenue depends on the oil price and the rouble exchange rate; profit depends on the tax formula as well. A distinctive feature is the large long-term supply contracts with Asia, some of which come with prepayment: this brings in cash today but ties up future volumes.
The main development project is the greenfield development of fields in Eastern Siberia and the Arctic, together with a pipeline and a port. Projects of this kind require years of investment before the first revenue.
Fields in Western and Eastern Siberia and the south of Russia, and offshore projects.
The country's largest network of oil refineries.
Wholesale supplies, exports and a retail network of filling stations.
Production of natural and associated gas — a line of business that grew along with the acquisitions.
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
The company explores for and produces oil and gas, refines the crude at its own refineries and sells petroleum products in Russia and abroad. By production volume it is the country's largest oil company.
Control rests with the state — the main stake belongs to a state holding company. Part of the shares is held by a foreign strategic investor, and the rest trade on the stock exchange.
It is a company that owns the whole chain: it produces oil, refines it itself and sells the fuel to the end consumer itself. This structure smooths out price swings — when the profitability of production falls, the profitability of refining rises.