Gazprom Neft published on February 22, 2017 its consolidated 2016 financial results and posted $918.07 mln (52.7 billion roubles) in 4rth quarter net profit after loss a year earlier.
Increased production and management efficiencies drove a 12.7% increase for 2016, to 456 billion roubles.
The net income attributable to shareholders of Gazprom Neft increased 82.5% and amounted to 200 billion roubles.
The company adjusted EBITDA in the last quarter of 2016 was at 131.3 billion roubles comparing to 92.6 billion roubles the same period a year ago.
The volume of oil refining in Q4 2016 increased by 1.1% to 10.68m tonnes.
Operating Highlights
| Q4 | Q3 | ∆, % | 12 months | ∆, % | ||
| 2016 | 2016 | 2016 | 2015 | |||
| 168.28 | 161.13 | 4.4 | Hydrocarbon production taking into account the share in joint ventures (m barrels o.e.) |
640.17 | 592.21 | 8.1 |
| 22.68 | 21.69 | 4.6 | Hydrocarbon production taking into account the share in joint ventures (Mt o.e.) |
86.20 | 79.70 | 8.2 |
| 10.68 | 10.56 | 1.1 | Volume of processing at own refineries and joint venture refineries (Mt) |
41.89 | 43.07 | (2.7) |
| 2.79 | 2.73 | 2.4 | Sales through retail network (Mt) | 10.45 | 10.16 | 2.9 |
In 2016, the company increased hydrocarbon production by 8.2% to 86.20m tonnes of oil equivalent (mmtoe).
This was supported by continuing production growth at the Novoportovskoye and Prirazlomnoye fields, and at the SeverEnergia fields, the commissioning of the East Messoyakhskoye field, consolidation of 50% of the production volumes of Northgas, an increase in the efficiency of beneficial use of gas produced in the Khanty-Mansi Autonomous Region and the Orenburg Region.
Financial Highlights
| Q4 | Q3 | ∆, % | 12 months | ∆, % | ||
| 2016 | 2016 | 2016 | 2015 | |||
| 474,4 | 450,2 | 5.4 | Sales (RUB, m) | 1,695,764 | 1,655,775 | 2.4 |
| 114,4 | 108,8 | 5.1 | EBITDA (RUB, m) | 402,277 | 345,160 | 16.5 |
| 131,3 | 121,3 | 8.2 | Adjusted EBITDA (RUB, m) | 456,198 | 404,811 | 12.7 |
| 12.37 | 11.65 | 6.2 | USD / barrels o.e. | 10.63 | 11.21 | 5.2 |
| 52,6 | 57,08 | 7.7 | Profit attributable to shareholders (RUB, m) |
200,179 | 109,661 | 82.5 |
| 78,1 | 89,8 | 12.9 | Cash flow from operations | 313,803 | 285,175 | 10.0 |
| 1.60 | 1.78 | 10.1 | Net debt / EBITDA | 1.60 | 1.90 | 15.8 |
Alexander Dyukov, Chairman of the Management Board of Gazprom Neft, said: «Gazprom Neft’s exceptional net profit growth in 2016 was supported by the company’s strategic projects. In production, this primarily relates to Arctic projects. In 2016, the company commenced the full-scale development of the Novoportovskoye and East Messoyakhskoye continental fields. At Prirazlomnoye, the only producing field on the Russian Arctic shelf, production in 2016 increased 2.5 times compared to 2015.»
«An important project in 2016 for Gazprom Neft was the development of the production of catalysts in Omsk. In 2016, the company’s value in roubles reached a company record level», he said.
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