LSE:ROSN

Stock Analysis Report

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Executive Summary

Public Joint Stock Company Rosneft Oil Company, together with its subsidiaries, engages in the exploration, development, production, and sale of crude oil and gas.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Rosneft Oil's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ROSN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.1%

ROSN

0.2%

GB Oil and Gas

2.5%

GB Market


1 Year Return

-21.9%

ROSN

-34.7%

GB Oil and Gas

-12.4%

GB Market

Return vs Industry: ROSN exceeded the UK Oil and Gas industry which returned -34.7% over the past year.

Return vs Market: ROSN underperformed the UK Market which returned -12.4% over the past year.


Shareholder returns

ROSNIndustryMarket
7 Day3.1%0.2%2.5%
30 Day16.1%2.3%2.8%
90 Day-14.0%-14.4%-7.2%
1 Year-17.4%-21.9%-30.9%-34.7%-8.2%-12.4%
3 Year12.5%-0.4%-3.6%-16.4%-5.9%-17.5%
5 Year49.9%25.3%6.2%-15.7%12.5%-12.9%

Price Volatility Vs. Market

How volatile is Rosneft Oil's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rosneft Oil undervalued compared to its fair value and its price relative to the market?

23.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ROSN ($5.2) is trading below our estimate of fair value ($6.75)

Significantly Below Fair Value: ROSN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ROSN is poor value based on its PE Ratio (9.3x) compared to the Oil and Gas industry average (4.9x).

PE vs Market: ROSN is good value based on its PE Ratio (9.3x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: ROSN is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: ROSN is overvalued based on its PB Ratio (0.9x) compared to the GB Oil and Gas industry average (0.4x).


Next Steps

Future Growth

How is Rosneft Oil forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

47.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROSN's forecast earnings growth (47.4% per year) is above the savings rate (1.2%).

Earnings vs Market: ROSN's earnings (47.4% per year) are forecast to grow faster than the UK market (20.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ROSN's revenue (13.8% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: ROSN's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ROSN's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Rosneft Oil performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROSN has high quality earnings.

Growing Profit Margin: ROSN's current net profit margins (5.3%) are lower than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: ROSN's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: ROSN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ROSN had negative earnings growth (-29.7%) over the past year, making it difficult to compare to the Oil and Gas industry average (-2.2%).


Return on Equity

High ROE: ROSN's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is Rosneft Oil's financial position?


Financial Position Analysis

Short Term Liabilities: ROSN's short term assets (RUB2,358.0B) do not cover its short term liabilities (RUB2,970.0B).

Long Term Liabilities: ROSN's short term assets (RUB2,358.0B) do not cover its long term liabilities (RUB5,188.0B).


Debt to Equity History and Analysis

Debt Level: ROSN's debt to equity ratio (72.1%) is considered high.

Reducing Debt: ROSN's debt to equity ratio has reduced from 112% to 72.1% over the past 5 years.

Debt Coverage: ROSN's debt is well covered by operating cash flow (32.5%).

Interest Coverage: ROSN's interest payments on its debt are well covered by EBIT (10.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Rosneft Oil's current dividend yield, its reliability and sustainability?

9.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ROSN's dividend (9.08%) is higher than the bottom 25% of dividend payers in the UK market (2.04%).

High Dividend: ROSN's dividend (9.08%) is in the top 25% of dividend payers in the UK market (5.67%)


Stability and Growth of Payments

Stable Dividend: ROSN's dividend payments have been volatile in the past 10 years.

Growing Dividend: ROSN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.1%), ROSN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ROSN's dividends in 3 years are forecast to be covered by earnings (52.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

Igor Sechin (59yo)

8.33yrs

Tenure

Mr. Igor Ivanovich Sechin has been the Chairman of Management Board of ROSNEFT Oil Company, PJSC since 2016 and Chief Executive Officer since May 22, 2012. Mr. Sechin served as the President of Rosneft unt ...


Leadership Team

NamePositionTenureCompensationOwnership
Igor Sechin
Chairman of Management Board8.33yrsno data0.13% RUB70.2m
Zeljko Runje
Deputy Chairman of the Management Boardno datano data0.0036% RUB2.0m
Pyotr Lazarev
Financial Director & Member of Management Board8.17yrsno data0.0042% RUB2.3m
Didier Casimiro
VP of Refining7.92yrsno data0.0043% RUB2.4m
Andrey Shishkin
VP for Informatization5.08yrsno data0.0036% RUB2.0m
Eric Liron
VP for In-House Services & Member of Management Board6.67yrsno data0.0052% RUB2.8m
Gennady Bukaev
Head of Internal Audit3.92yrsno datano data
Yury Kurilin
VP, Chief of Staff & Member of Management Board3.08yrsno datano data
Zavaleeva Vladimirovna
State Secretary2.08yrsno data0.000060% RUB33.0k
Andrey Polyakov
VP, Chief Geologist & Member of Management Board0.42yrno datano data

5.1yrs

Average Tenure

56yo

Average Age

Experienced Management: ROSN's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Igor Sechin
Chairman of Management Board8.33yrsno data0.13% RUB70.2m
Hans-Georg Rudloff
Independent Director1.92yrs₽580.00kno data
Robert Dudley
Director6.92yrsno datano data
Oleg Viyugin
Independent Director4.92yrs₽560.00kno data
Arthur Warnig
Independent Deputy Chairman of the Board5.83yrs₽580.00k0.00088% RUB483.8k
Andrey Belousov
Director4.92yrsno datano data
Gerhard Schroeder
Independent Chairmanno data₽600.00kno data
Alexander Novak
Director2.67yrsno datano data
Guillermo Quintero
Director4.92yrsno datano data
Zakhar Sabantsev
Chairman of the Audit Commissionno datano datano data

4.9yrs

Average Tenure

63yo

Average Age

Experienced Board: ROSN's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Public Joint Stock Company Rosneft Oil Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Joint Stock Company Rosneft Oil Company
  • Ticker: ROSN
  • Exchange: LSE
  • Founded: 1993
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: US$54.972b
  • Shares outstanding: 10.56b
  • Website: https://www.rosneft.com

Number of Employees


Location

  • Public Joint Stock Company Rosneft Oil Company
  • 26/1, Sofiyskaya Embankment
  • Moscow
  • 117997
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ROSNLSE (London Stock Exchange)YesSPON GDR REG SGBUSDJul 2006
OJS1DB (Deutsche Boerse AG)YesSPON GDR REG SDEEURJul 2006
OJSC.YOTCPK (Pink Sheets LLC)YesSPON GDR REG SUSUSDJul 2006
ROSNLBATS-CHIXE (BATS 'Chi-X Europe')YesSPON GDR REG SGBUSDJul 2006
ROSNWBAG (Wiener Boerse AG)YesSPON GDR REG SATEURJul 2006
ROSNMISX (Micex - Rts)Common StockRURUBJul 2006
RNFT.FOTCPK (Pink Sheets LLC)Common StockUSUSDJul 2006

Biography

Public Joint Stock Company Rosneft Oil Company, together with its subsidiaries, engages in the exploration, development, production, and sale of crude oil and gas. The company produces oil in Western and Eastern Siberia, Volga-and Ural Regions, Far East, Timan-Pechora, Krasnodar Region, and the shelf of Russian seas, including Arctic shelf, as well as in Latin America; and has assets located in Russia and internationally comprising Venezuela, Cuba, Canada, the United States, Brazil, Norway, Germany, Italy, Mongolia, Kyrgyzstan, China, Vietnam, Myanmar, Turkmenistan, Georgia, Armenia, Belarus, Ukraine, Egypt, Mozambique, Iraq, and Indonesia. It is also involved in producing petrochemicals, including ethylene, propylene, and polyethylene; base and industrial oils; motor and transmission oils for cars and trucks, buses, agricultural and special equipment, and railway and marine transport; special oils for the aviation industry; hydraulic, gear, turbine, compressor, transformer oils, etc.; coolants, softener oils, paraffins, etc.; and additives to fuels and oils. In addition, the company transports and exports crude oil through pipelines, and railway and mixed transportation; engages in the wholesale, retail, storage, and transportation and transshipment of petroleum products; and provides bunkering and aircraft refueling services, as well as bitumen products. Further, it operates a retail network of company-owned and leased filling stations; and provides survey and drilling services. The company was founded in 1993 and is based in Moscow, Russia. Public Joint Stock Company Rosneft Oil Company is a subsidiary of JSC ROSNEFTEGAZ. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 22:02
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.