Gazprom Neft on May 24, 2017 published its consolidated IFRS financial statements for Q1 2017. Profit balloons at Russian oil producer due to ramp-up at domestic and Iraqi fields.
Revenue, including duties (sales), grew by 28% to RUB 468.6 bn as a result of higher hydrocarbon production volumes and increased prices for oil and petroleum products in the global and domestic markets
- Net income of RUB 62 bln, a year-on-year increase of 49.1%, driven by strong organic growth and management efficiency initiatives.
- Adjusted EBITDA increased by 22% year-on-year to RUB 118 bln.
- Hydrocarbon production, inclusive of joint venture operations, grew by 4.8% year-on-year to 21.95 m tonnes of oil equivalent.
Higher production volumes and efficiency programmes initiated by the management delivered a 22.2% year-on-year increase in adjusted EBITDA to RUB 118 bln.
During the reporting period, the Company achieved a record quarterly net income of RUB 62 bln, a year-on-year increase of over 49%.
Hydrocarbon production, inclusive of joint venture operations, reached 21.95 m tonnes of oil equivalent, up 4.8% year-on-year.
This was triggered by production ramping up at the Novoportovskoye, Prirazlomnoye and Messoyakha fields and increased production in Iraq.
A reduction in oil products output in Q1 2017 was in line with the Company’s annual production plan, which factors in scheduled maintenance of large process ring units at the Moscow Oil Refinery as well as crude oil distillation units (CDU-4) at Slavneft-YaNOS.
Despite a challenging petroleum products market, Gazprom Neft increased its retail sales by 6.8% selling more than 2.5 m tonnes of petroleum products through its own filling station network.
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