The pipeline operator registered its Q1 net income against a net loss of 448.28 million rubles (about $17.3 million) in the fourth quarter of 2006, Transneft said.
The net loss in October-December 2006 was due to expenses on rerouting a section of the ambitious East Siberia-Pacific Ocean (ESPO) oil pipeline project managed by Transneft, the company said.
The project's cost was initially estimated at $11.5 billion, but needed to be revised as the pipeline was rerouted for ecological reasons about 400 kilometers (250 miles) away from Lake Baikal, the world's largest freshwater body, and divided into three segments following a series of discussions and a presidential order.
The government owns 75% of Transneft stock or 100% of its voting shares. Transneft's charter capital is 6.22 million rubles (about $216,000). Preferred shares are held by private owners.
