Gazprom Neft’s 2021 net profit reaches an all-time high

St.Petersburg, February 18 - Neftegaz.RU. Adjusted EBITDA reached ₽986.1 billion, demonstrating a 2-fold increase year-on-year, which was driven by positive trends in the pricing environment for oil and petroleum products.
Net profit attributable to Gazprom Neft shareholders saw a 4-fold increase for FY2021, reaching a record ₽503.4 billion.
Effective operational activities delivered free cash flow of ₽500.1 billion for FY2021.

Alexander Dyukov, Chairman of the Management Board of Gazprom Neft, said:

• In 2021, the company reached the 100 mtoe milestone for the 1^st time in its history, having doubled production within 10 years
• This was one of the key targets we had set ourselves as part of the company’s long-term strategy
• We also see opportunities for further production growth in 2022 and beyond

In FY2021, hydrocarbon production exceeded 100 million tonnes of oil equivalent (mtoe) for the 1^st time in the сompany’s history.
A year-on-year increase of 5.6% up to 101.4 mtoe was the result of higher production at oil-rim deposits and key company assets in the Khanty-Mansi and Yamalo-Nenets AOs and the Tomsk and Orenburg Regions, as well as the launch of new infrastructure at the Tazovskoye and Novoportovskoye fields.

Dyukov noted:

• Recovering demand for oil, as well as a swift and effective response to the changing market environment, helped us deliver a record performance
• These results have also allowed us to increase dividend payments
• The Board of Directors has recommended dividend payments in the amount of ₽40 per ordinary share for 9M 2021, which is another all-time high
• Going forward, we intend to continue paying interim dividends

Annual refining volumes at Gazprom Neft’s own and JV refineries also saw a record growth of 7.8%, reaching 43.5 million tonnes.
This growth was supported by recovering demand following the gradual lifting of COVID-19 restrictions, and the commissioning of the Euro+ complex at the Moscow Refinery.

In 2021, Gazprom Neft sold more than 26 million tonnes of petroleum products through premium sales channels, up 12.9% year-on-year.
Recovering passenger traffic and improving market environment delivered significant growth in aviation fuel and bitumen sales, up 36.9% and 34.7%, respectively, year-on-year.
Lubricant sales increased 6.5% year-on-year.
Dyukov said:

• We continue to develop new exploration and production projects in response to growing demand for oil and petroleum products
• The company is also implementing a wide range of initiatives aimed at reducing our carbon footprint - both from our own operations and activities of businesses in other sectors of the economy
• As one example, we plan to implement a major pilot carbon capture and storage project in the Orenburg Region

Sustainable development remains a key focus of the strategy and the quality of the company’s disclosure on climate initiatives was confirmed by Gazprom Neft’s leading position in the CDP rating.

The company is also focused on developing partnerships in sustainable development and is working alongside aviation industry leaders to develop sustainable aviation fuel with minimal carbon footprint as part of the Eurasian SAF-Alliance.