Slavneft's management attributes such a rapid decrease in the company's net profit to the shareholders' decision to have Slavneft performing mainly managerial functions rather than selling its subsidiaries' products.
Slavneft's net profit sinks
The net profit of the Russian oil and gas company Slavneft under Russian Accounting Standards (RAS) shrank 40 times to RUR22.99m (approx. USD0.89m) in the first quarter of 2007 compared to RUR914.447m (approx. USD35.47m) in the same period a year earlier, RBC reports. The company announced these figures in its report. Slavneft's revenue went down 27.7 times to RUR873.101m (approx. USD33.87m) on January-March 2007, production costs dropped 49 times to RUR412.591m (approx. USD16.01m). Gross profit reduced 8.6 times to RUR460.51m (approx. USD17.86m). Meanwhile, sales profit slid 21.31 times to RUR161.399m (approx. USD6.26m).