Gazprom Neft increases net profit by 7% in 9M 2019

St. Petersburg, November 18 - Neftegaz.RU. Gazprom Neft announces its consolidated IFRS financial results for the 9M and Q3 of 2019. The revenue in the 9M of 2019 grew by 2.4 % year-on-year to RUB1.871 trillion. Adjusted EBITDA amounted to RUB615.5 billion, a 0.2% increase year-on-year. This positive dynamics reflects higher production at major projects and greater refining efficiency.

Net profit attributable to Gazprom Neft shareholders totaled RUB320 billion in 9M, an increase of 7.1 % year-on-year. Free cash flow amounted to RUB165.5 billion, reflecting significant growth in operating cash flow in 9M 2019. Gazprom Neft continued to demonstrate consistently high level of financial viability, with the company’s net debt/EBITDA ratio standing at 0.56 as at the end of Q3.

Hydrocarbon production in 9M 2019, including Gazprom Neft’s share in joint ventures, grew by 4.4 % year-on-year, to 71.9 million tonnes of oil equivalent (mtoe) — the result of higher production volumes at the Novoportovskoye and Vostochno-Messoyakhskoye fields, at the fields in the Orenburg region, and Gazprom Neft’s increased ownership interest in Arcticgas. The company opened the 1st Integrated Field Development Centre (IFDC) in Russia, which will allow Gazprom Neft to halve lead-times in achieving “1st oil” on its major production projects in the future.

Refining volumes at Gazprom Neft’s own and joint-venture refining assets in 9M totalled 31.1 million tonnes. In Q3, refining volumes increased by 10.6 % quarter-on-quarter to 11.1 million tonnes due to the completion of planned repairs and refurbishment at the company’s Pančevo and Yaroslavl refineries.

The company completed the construction of the region’s 1st solar power plant at the Omsk Refinery, an investment project aimed at introducing green technologies in the industry, which is unique for Russia’s oil & gas. The company also started the construction of Russia’s 1st high-tech catalyst production facility at the Omsk Refinery.

Sales of oil products via premium channels reached 20.1 million tonnes in 9M. The company increased sales of marine fuels by 17.8 % year-on-year, aviation fuels by 3.8 %, and lubricants by 4.3 %.

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