Russian services conglomerate Sistema said Thursday it made a $5.3 billion net loss in the fourth quarter of 2014 compared to a profit of $47.7 million a year earlier due to the loss of oil company Bashneft.
Sistema, owned by billionaire Vladimir Yetuvshenkov, was forced to return its Bashneft stake to the state after a Russian court ruled that its acquisition in 2009 was an "improper privatization."
Sistema recorded a $5 billion loss related to Bashneft, as well as a $290 million loss on mobile asset impairment in India and $92.5 million in provisions for cash and deposits in a Ukrainian bank, it said Thursday.
Revenues fell 29.5 percent to $3.9 billion and adjusted operating income before depreciation and amortisation declined 56.4 percent to $616 million, it said in a statement.
The revenue figure was also hit by a drop in the ruble which fell 40 percent against the dollar last year due to a slump in oil prices and Western sanctions against Russia over its role in the Ukraine crisis.
In ruble terms, revenues were up 2.1 percent, driven by Russia's top mobile operator MTS, children's goods retailer Detsky Mir and the acquisition of oilfield services firm Targin and of the pulp and paper business.1
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
