Surgut Cash Mountain Drops

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Russian oil producer Surgutneftegas posted a massive decline in net profit under International Financial Reporting Standards for the first half of 2021, while its famous cashpile also decreased on the back of a stronger ruble. The secretive company's cash mountain amounted to 3.73 trillion rubles ($50.76 billion) as of end-June, which was down by almost 55 billion rubles from 3.786 billion rubles as of Mar. 31. The cashpile is largely dollar denominated, which means that the ruble strengthening negatively impacts the cash reserves. Surgut reported forex losses of 81.5 billion rubles for the first half, versus gains of 415 billion rubles a year ago. As a result, the company's net profit crashed 65% to 153 billion rubles. Revenues almost doubled, however, to 855 billion rubles thanks to higher crude oil production and sales.

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