Gazprom Neft reports record net income for Q1 2017

24 May 2017

Gazprom Neft (the “Company”) today publishes its consolidated IFRS financial statements for Q1 2017.

  • Net income of RUB 62 bn, 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 bn.
  • Hydrocarbon production, inclusive of joint venture operations, grew by 4.8% year-on-year to 21.95 m tonnes of oil equivalent.
  • 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.

    Higher production volumes and efficiency programmes initiated by the management delivered a 22.2% year-on-year increase in adjusted EBITDA to RUB 118 bn. During the reporting period, the Company achieved a record** quarterly net income of RUB 62 bn, 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.

 Financial Indicators

1Q
2017

4Q
2016

Δ, %

3m
2017

3m
2016

Δ, %

Sales (RUB, m)

468,606

474,438

(1.2)

468,606

366,002

28.0

EBITDA (RUB, m)

103,855

114,416

(9.2)

103,855

83,401

24.5

Adjusted EBITDA* (RUB, m)

117,794

131,329

(10.3)

117,794

96,365

22.2

USD / boe

12.30

12.37

(0.6)

12.30

8.30

48.2

Income attributable to
Gazprom Neft PJSC
shareholders (RUB, m)

61,953

52.699

17.6

61,953

41,541

49.1

Cash flow from operations65,15585,683(24.0)65,15583,496(22.0)
Net debt / EBITDA1.451.60(9.4)1.451.83(20.8)

 

Key Operational Indicators

1Q
2017

4Q
2016

Δ, %

3m
2017

3m
2016

Δ, %

Hydrocarbon production
including our share of joint
ventures (Mmboe)

162.76

168.28

(3.3)

162.76

155.60

4.6

Hydrocarbon production
taking into account our share of joint
ventures (Mmtoe)

21.9522.68(3.2)21.9520.954.8

Volume of processing
at own refineries and
joint venture refineries (Mt)

8.78

1068

(17.8)

8.78

10.23

(14.2)

Sales through premium
channels (Mt)

5.56

6.42

(13.4)

5,56

5,65

(1,6)

Sales through retail
network (Mt)

2.51

2.79

(10.0)

2,51

2,35

6.8

 

* Adjusted EBITDA includes share of EBITDA from associated and jointly controlled companies recorded by equity accounting method
** Excluding a one-off effect from Tomskneft’s promissory notes in Q2 2015