GAZPROM NEFT PROFIT: +58%
RUB298.7 billion — Gazprom Neft's net profit for 9M 2018, a 58-percent increase on 9M 2017;
RUB614.5 billion adjusted EBITDA* for the first nine months of 2018 — up 53.9 percent on 9M 2017;
Free cash flow (FCF) for 9M 2018, standing at RUB134.8 billion, a 62.4-percent increase year-on-year.
Revenue in the first nine months of 2018 amounted to one trillion, 827.3 billion rubles (RUB1,827,300,000,000), representing a 29.8 percent increase year-on-year.** Adjusted EBITDA demonstrated a more than 1.5-fold increase year-on-year, to RUB614.5 billion.* This increase reflects positive changes in oil prices on the global and domestic markets, the successful development of new upstream projects, as well as greater operational efficiency. Net profit attributable to PJSC Gazprom Neft shareholders totalled RUB298.7 billion for 9M 2018, an increase of 58 percent year-on-year.
Significant growth in the Company's operational cash flow, together with the completion of key investments in infrastructure at new upstream projects, resulted in a positive free cash flow of RUB134.8 billion for 9M 2018.
Hydrocarbon production in 9M 2018, including Gazprom Neft's share in production at joint ventures, increased by 2.8 percent year-on-year to 68.9 million tonnes of oil equivalent (mtoe), driven by higher production volumes at new fields, and Gazprom Neft's increased interest in Arcticgas. The unit cost of hydrocarbon production in ruble terms saw a 5.2-percent reduction year-on-year, the result of optimising cost control at mature fields.
Refining volumes at Gazprom Neft's own and joint-venture refineries during the period totalled 31.8 million tonnes, an increase of 6.6 percent year-on-year, following the completion of a planned refinery maintenance in 2017. The Company also increased its light petroleum product yield faster than expected, particularly with regard to production of high-octane gasoline and diesel fuels, as well as jet fuel. Sales volumes of oil products through premium distribution channels increased by 4.6 percent year-on-year, amounting to 20.3 million tonnes.
Alexander Dyukov, Chairman of the Management Board of Gazprom Neft, commented: "The Company has maintained its focus on improving the efficiency of its business processes and operations — reducing unit costs in oil production, increasing the daily production, further improving refining depth, and increasing the light product yield. Our performance across our key financial indicators is up by more than 50 percent over the first nine months of this year, and free cash flow has increased more than 1.5-fold. This consistent improvement in our financial and operational performance means Gazprom Neft has every justification for increasing dividend payments, and for further enhancing shareholder value."
Financial highlights
3Q |
2Q |
∆, % |
9M |
∆, % |
||
2018 |
2018 |
2018 |
2017 |
|||
689.557 |
617.103 |
11.7 |
Revenues (RUB, millions) |
1.827.293 |
1.407.856 |
29.8 |
714.662 |
639.592 |
11.7 |
Revenues after excise duties (RUB, millions)*** |
1.895.456 |
1.457.525 |
30.0 |
225.894 |
193.130 |
17.0 |
EBITDA (RUB, millions) |
556.473 |
355.131 |
56.7 |
246.262 |
212.403 |
15.9 |
Adjusted EBITDA (RUB, millions) |
614.462 |
399.246 |
53.9 |
21.12 |
20.40 |
3.5 |
$/boe |
19.57 |
13.77 |
42.1 |
132.194 |
96.810 |
36.5 |
Profit attributable to Gazprom Neft PJSC shareholders (RUB, millions) |
298.669 |
189.000 |
58.0 |
181.347 |
127.180 |
42.6 |
Operational cash flow |
391.636 |
325.781 |
20.2 |
87.312 |
35.949 |
142.9 |
Free cash flow |
134.846 |
83.013 |
62.4 |
0.79 |
1.01 |
(21.8) |
Net debt/EBITDA |
0,79 |
1,27 |
(37.7) |
Key operational data
3Q |
2Q |
∆, % |
9M |
∆, % |
||
2018 |
2018 |
2018 |
2017 |
|||
177.90 |
168.51 |
5.6 |
Hydrocarbon production (including shares in joint ventures. mboe) |
510.96 |
497.10 |
2.8 |
24.01 |
22.72 |
5.7 |
Hydrocarbon production (including shares in joint ventures. mtoe) |
68.93 |
67.05 |
2.8 |
11.24 |
10.44 |
7.7 |
Refining throughput at own refineries and joint ventures (million tonnes) |
31.81 |
29.85 |
6.6 |
7.43 |
6.74 |
10.2 |
Sales through premium channels (million tonnes) |
20.27 |
19.37 |
4.6 |
2.93 |
2.81 |
4.1 |
Sales at filling stations (million tonnes) |
8.41 |
8.14 |
3.3 |
* Adjusted EBITDA includes proportional EBITDA from associated and jointly controlled companies, equity accounting method.
** With effect from 1 January 2018 the Group moved over to the new IFRS 15 definition of “Revenue from Contracts with Customers”, leading to changes in accounting policies and adjustments to certain sums recognised in the company’s financial accounts. Export duties are reflected in revenue totals, and the excise duty on sales levied in Serbia in the form of a sales tax is excluded.
*** For reference — “Sales (revenue) including excise duties” include excise duties on sales in international markets (sales), applied to 4Q 2017.
More information is here.
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Earlier:
2018, August, 17, 11:20:00
GAZPROM NEFT NET PROFIT UP TO 49.6%GAZPROM NEFT - For the first six months of 2018 Gazprom Neft achieved revenue** growth of 24.4% year-on-year, at one trillion, 137.7 billion rubles (RUB1,137,700,000,000). The Company achieved a 49.8% year-on-year increase in adjusted EBITDA, to RUB368.2 billion. This performance reflected positive market conditions for oil and oil products, production growth at the Company’s new projects, and effective management initiatives. Net profit attributable to Gazprom Neft PJSC shareholders grew 49.6% year on year, to RUB166.4 billion. Growth in the Company’s operating cash flow, as well as the completion of key infrastructure investments at new upstream projects, delivered positive free cash flow of RUB47.5 billion for 1H 2018. |
2017, December, 11, 10:10:00
RUSSIAN ARCTIC OILRussia has three oil export terminals on its Arctic coast. Shipments began from Lukoil PJSC's 240,000 barrel a day Varandey terminal in 2008. It now handles about 150,000 daily barrels from nearby fields. Gazprom Neft's Prirazlomnoye field produces approximately 80,000 barrels a day, with a target capacity of 130,000. The same company's 170,000 barrel a day Arctic Gate terminal started operations this year and exports about 150,000 barrels a day from the Novoportovskoye field. Crude from all three terminals is shipped in shuttle tankers to Murmansk, from where cargoes are sent on larger vessels to Europe.
|
2017, September, 22, 08:40:00
IRAQI OIL TO U.S.Gazprom Neft has shipped its second and largest cargo of Iraqi crude to the US since the Badra field, its flagship overseas oil project, came on stream in 2014, the Russian oil company said Tuesday.
|
2017, July, 5, 12:05:00
REPSOL & GAZPROM DEALSpain’s Repsol has agreed to establish a joint venture with Russian oil company Gazprom Neft, in the latest move by a European oil and gas company to deepen co-operation with Russia despite western sanctions targeting the country’s energy sector.
|
2016, December, 26, 18:35:00
GAZPROM DISCOVERS SERBIAA new deposit in Serbia’s Pannonian oil and gas basin may contain recoverable reserves of 432,000 tonnes, according to Russia's PJSC Gazprom Neft. The Idos-X-4 well was drilled to the Neogene-aged formation at a depth of 2,268-2,287 m in the Idos-Sever (Northern Idos) field.
|
2016, December, 14, 18:50:00
RUSSIA WILL STUDY IRANGazprom joins Lukoil PJSC and Zarubrezhneft OAO in Russia, Iran’s Oil Minister Bijan Namdar Zanganeh said in Tehran at the signing ceremony. Salbali Karimi, managing director of the Iranian Central Oil Fields Co., and Alexander Dyukov, chairman of the management board and chief executive officer of Gazprom Neft, signed the memorandum of understanding.
|
2016, September, 27, 18:30:00
HARD RUSSIAN OILTop Russian producer Rosneft expects the share of hard-to-recover oil production to rise to 11 percent of its total crude output by 2020, from 7 percent this year. Gazprom Neft, the oil arm of state gas producer Gazprom, is raising its share of output of hard-to-recover oil by tapping more reserves at the Messoyakha project and other assets. |