CEO: Rosgeo expects IFRS revenue of 26 bln rbl in 2022

MOSCOW, Dec 27 (PRIME) -- The revenue of Russian state geological exploration company Rosgeo will fall to around 26 billion rubles in 2022 from 29.9 billion rubles in 2021, as calculated under International Financial Reporting Standards (IFRS), CEO Sergei Gorkov said on Tuesday in a news briefing.

“We expect revenue of about 26 billion (rubles) in 2022,” he said, adding that the contraction stems from the postponement of some projects for 2023 and suspension of two European projects.

Still, Rosgeo will post a net profit in 2022, he said, adding that the company had invested the 4 billion rubles that it received from the government in 2022 in new equipment.

In 2023, geological exploration of solid mineral reserves will grow, but oil exploration on the shelf will contract, and not only in Russia, but in the world in general.

“The shelf zone is very expensive in general. If companies have to adjust production or if they look into efficiency of production, the shelf projects are objectively not the most efficient, and they are not a priority as well,” he said.

Gorkov also said that the joint project of Rosgeo and Elgaugol for geological exploration of two deposits near the Elga coal field in 2023–2024 would cost about 1 billion rubles.

(68.4487 rubles – U.S. $1)

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