A 2-fold increase in operating cash flow, supported by the phased realisation of the company’s investment programme, also resulted in sizeable free cash flow of $5,2 billion in 9M 2021.
Hydrocarbon production, including Gazprom Neft’s share in joint ventures, increased 2.7% in 9M 2021, reaching 74.1 million tonnes of oil equivalent (mtoe).
Alexander Dyukov, CEO of Gazprom Neft, noted:
- For the full year, the company is expected to produce over 100 million tonnes of oil equivalent for the 1st time in its history, with further growth potential next year
- Thanks to recovering demand for oil, and the company’s prompt and effective response to the changing market environment, we have demonstrated positive dynamics across our key financial indicators
- The company’s leverage has declined to its lowest level in 12 years, with the net debt to EBITDA ratio at 0.32x
- Gazprom Neft is maintaining its practice of paying interim dividends, with the Board of Directors recommending a record dividend of ₽40 per ordinary share for 9M 2021
In 9M 2021, the company delivered a 12.2% increase in premium-channel petroleum product sales, which comprised 19.2 million tonnes.
Decarbonisation and environmental protection continue to be among the company’s top priorities.
Gazprom Neft is planning to develop projects in carbon capture and storage and hydrogen energy, as well as developing minimal-carbon-footprint aviation biofuels in partnership with Aeroflot.
- We are continuing to develop projects aimed at cutting our carbon footprint
- In 3Q 2021, Gazprom Neft signed agreements with Sovcomflot and Aeroflot, leading Russian transport companies to collaborate in producing more sustainable fuels
- In the near future the Gazprom Neft Board of Directors will review the company’s new 2035 strategy, which will set out our sustainable development goals
- We have already announced one of these goals: a 30% reduction in our operational carbon intensity by 2030
Author: Elena Alifirova