Gazprom Neft net profit falls year on year in 1Q 2014

May 19, 2014

Gazprom Neft on May 16 reported its consolidated financial results for 1Q 2014, prepared in accordance with International Financial Reporting Standards (IFRS).

A stronger financial performance in 1Q 2014 compared with 1Q 2013  was driven by increased hydrocarbon production volumes and a rise in product sales via premium channels. These factors led to a 9.6% Y-o-Y increase in adjusted EBITDA* (84.03 RUB bln). Net profit attributable to Gazprom Neft’s shareholders was 37.82 RUB bln, a 4.4% decrease, mainly due to foreign exchange losses associated with the revaluation of the loan portfolio. Operational cash flow reached 70.98 RUB bln in 1Q 2014, an increase of 61.6% Y-o-Y.

Hydrocarbon production volumes in 1Q 2014 increased 4.5% Y-o-Y to 116.75 mmboe (15.88 mmtoe), due to the application of new technology at mature fields, continued production growth at the Orenburg region and Yuzhno-Priobskoye fields as well as Gazprom Neft’s increased effective stake in Sever Energia.

Refining throughput in 1Q 2014 reached 10.84 million tonnes, showing growth of 4.6% Y-o-Y, supported by increased condensate refining at the Omsk refinery and higher bitumen output and the completion of maintenance work on a diesel hydrotreater at the Moscow refinery in 2Q 2013.

Source: Gazprom Neft Press Office, 2014