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.
Total hydrocarbon production (including Gazprom Neft's share in production at joint enterprises) in the first six months of 2018 amounted to 44.9 million tonnes of oil equivalent (mtoe), an increase of 2% year-on-year. This was driven by higher production at new fields (Novoportovskoye and Vostochno-Messoyakhskoye) and an increase in Gazprom Neft's interest in Arktikgaz, from 46.6% to 50% in March 2018.
First-half refining volumes increased by 9,8%, having been restored following the completion of a planned refinery maintenance in 1H 2017. Light petroleum product output also outperformed as a result of improved refining efficiency. The Company also increased its sales of oil products through premium sales channels, by 6.4% year-on-year, to 12.8 million tonnes.
Alexander Dyukov, Chairman of the Gazprom Neft Management Board, commented: "Gazprom Neft has seen a 1.5-fold increase in its operating profit in the first half of 2018, once again confirming its market-leading position in terms of financial growth. In an environment of curtailed oil production, the company has focused on increasing operating efficiency: industry trends and inflationary factors notwithstanding, Gazprom Neft reduced the unit costs of crude production at mature fields by eight percent year-on-year, as well as ensuring optimum refining volumes in current marketing conditions, and increasing sales of oil products."
Key financial data
2Q |
1Q |
∆, % |
6 months |
∆, % |
||
2018 |
2018 |
2018 |
2017 |
|||
617,103 |
520,633 |
18.5 |
Sales (RUB millions) |
1,137,736 |
914,332 |
24.4 |
639,592 |
541,202 |
18.2 |
Sales (revenue) including excise duties (RUB millions)*** |
1,180,794 |
944,274 |
25.0 |
193,130 |
137,449 |
40.5 |
EBITDA (RUB millions) |
330,579 |
218,216 |
51.5 |
212,403 |
155,797 |
36.3 |
Adjusted EBITDA (RUB millions) |
368,200 |
245,807 |
49.8 |
20.40 |
16.65 |
22.5 |
USD/boe |
18.63 |
12.99 |
43.4 |
96,810 |
69,665 |
39.0 |
Profit attributable to shareholders in Gazprom Neft PJSC (RUB millions) |
166,475 |
111,269 |
49.6 |
127,180 |
83,109 |
53.0 |
Cash flow from operations |
210,289 |
181,128 |
16.1 |
35,949 |
11,585 |
210.3 |
Free cash flow |
47,534 |
26,893 |
76.8 |
1.01 |
1.17 |
(13.9) |
Net debt / EBITDA |
1.01 |
1.37 |
(26.3) |
Key operational data
2Q |
1Q |
∆, % |
6 months |
∆, % |
||
2018 |
2018 |
2018 |
2017 |
|||
168.51 |
164.55 |
2.4 |
Hydrocarbon production including the company’s share in joint ventures (mboe) |
333.06 |
326.37 |
2.0 |
22.72 |
22.20 |
2.3 |
Hydrocarbon production including the company’s share in joint ventures (mtoe) |
44.92 |
44.02 |
2.0 |
10.44 |
10.13 |
3.1 |
Refining volumes at the company’s own and jointly-owned facilities (million tonnes) |
20.57 |
18.73 |
9.8 |
6.74 |
6.10 |
10.5 |
Sales volumes through premium channels (million tonnes) |
12.84 |
12.07 |
6.4 |
2.81 |
2.67 |
5.4 |
Sales volumes through the Gazprom Neft filling station network (million tonnes) |
5.48 |
5.23 |
4.8 |
* Adjusted EBITDA includes that proportion of EBITDA arising from associated or jointly controlled companies, calculated in terms of equity participation.
** 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 until Q4 2017.
-----
Earlier:
2018, July, 25, 10:00:00
IRAN'S DEVELOPMENT BY GAZPROMSHANA - A non-disclosure agreement was signed last year between Iran's OIEC and Russia's Gazprom Neft for the development of the Azar and Changuleh oil fields. The agreement was endorsed by the National Iranian Oil Company (NIOC).
|
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, 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. |
2015, November, 23, 19:40:00
GAZPROM NEFT DOWN 6.2%Rising hydrocarbon production, retail sales and efficient management drove a Y-o-Y increase in adjusted EBITDA* of 9.3% (RUB 312 bln) for 9M 2015. A 0.6% Y-o-Y decline in sales was driven by the global drop in oil prices. Net income attributable to the shareholders of Gazprom Neft fell by 6.2% Y-o-Y to RUB 130.9 bln. The negative impact of foreign exchange rate differences in loan revaluations held back net income growth. |