Transneft reduced its net income due to a re-assessment following a fall in the rouble

The Russian pipeline monopoly Transneft has reduced itse net income in the first quarter of 2014 by 11% to 40.2 billion roubles, the company stated.

In Q1, Transneft redeemed Eurobonds and paid out almost 47 billion roubles. Consequently, it received negative net cash flow at 2.45 billion roubles, Transneft said.

“The group declared a negative profit in “net change of fair value of derivative financial instruments” at 5.118 billion roubles over the three months, ended on March 31st, 2014 against the income, amounting to 203 million roubles over the same period last year,” it is said in the report of Transneft.

“This dynamics is due to sizeable fluctuation and depreciation of the rouble’s rate to the dollar over the reported period,” the company states