Gazprom Neft reports unaudited IFRS H1 2013 financial results

The company’s financial performance in H1 2013 compared to H1 2012 was positively affected by growth in hydrocarbon production and a rise in petroleum products sales via premium distribution channels. The impact of these factors led to a 1.8% Y-o-Y increase in revenue and a 0.9% Y-o-Y increase in adjusted EBITDA. The 1.4% Y-o-Y decrease in profit attributable to Gazprom Neft’s shareholders was related to fforeign exchange losses due to the revaluation of the credit portfolio, as well as a rise in depreciation expenses resulting from the investment programme.

An increase in production volumes, refining throughput and domestic petroleum product sales drove revenue up by 2.4% Q-o-Q. Falling crude oil and oil product prices, combined with the negative impact of the export duty lag in Q2 2013 drove a 3.7% Q-o-Q decrease in adjusted EBITDA and a 3.8% Q-o-Q decrease in profit attributable to Gazprom Neft’s shareholders.

Hydrocarbon production volumes in H1 2013 increased by 3.6% Y-o-Y to 224.87 mmboe (30.61 mmtoe), due to the ongoing development of major projects (Orenburg, SeverEnergia), continued production growth at the Priobskoye field, and the successful application of high-tech operations at mature fields, as well as programmes aimed at improving associated petroleum gas utilization.

Refining throughput decreased 0.8% Y-o-Y to 21.19 million tonnes in H1 2013 due to planned maintenance. Sales via premium distribution channels reached 10.98 million tonnes, and average daily sales per petrol station in Russia grew by 9% to 18 tonnes/day.

CAPEX increased by 31.3% Y-o-Y, driven mainly by new project development and the use of new technology to maintain production at mature fields.