The company's net profit in 2005 was at 4.608 billion rubles ($176 million).
The company said the decrease was largely due to the rerouting of a section of the ambitious East Siberia-Pacific Ocean (ESPO) oil pipeline project managed by Transneft.
The project's cost was initially estimated at $11.5 billion, but needs to be revised as the pipeline's path was for ecological reasons rerouted 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.
Value of Transneft assets in 2006 increased against the previous year by 34% and totaled 151.858,741 billion rubles ($5.84 billion).
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.
