Moscow, June 11 - Neftegaz.RU. Coming off a record-setting year in terms of income, Gazprom Neft's chairman said shareholders are now reaping the rewards.
The board of directors at Russia's 3rd-largest oil producer approved a payout of $1.15 billion in dividends, or about $0.24 per share, 40 % higher than last year. Gazprom Neft recorded a net profit of $4 billion last year.
«Gazprom Neft's record dividend yield is underpinned by the company's strong financial results,» Alexander Dyukov, the company's board chairman, said in a statement during the weekend. «In 2017, Gazprom Neft achieved the highest net profit in its history, with adjusted EBITDA up by more than 20 %.»
Earnings before interest, taxes, depreciation and amortization are used to compare profitability of a company. For revenue, the $8.3 billion for the first 3 months of the year marked a 14.5 % increase year-on-year. Net profit attributable to shareholders during the period was $1.1 billion, a 12.4 % increase from the same time last year.
Oil represents about 7 % of the total Russian gross domestic product, according to the World Bank. That metric plunged to around 5 % in 2015 just as oil prices where targeting historic lows below $30 per barrel, pushing the Russian economy into a recession.
Oil prices have been fluid this year, trading in a range of around $62 per barrel to $80 per barrel for Brent, the global benchmark for the price of oil. Brent was trading near $76 per barrel early Monday.
Speaking last week, Vladimir Putin said the economy was on solid ground. Growth was «guaranteed in the short term,» but it's sustainable and inflation is low, which he said was a prerequisite for forward momentum. Investments in the Russian economy, meanwhile, are up 4.4 % from last year.
In a report on the first 3 months of the year, the company's net production, including its share in joint ventures, was around 160 million barrels of oil equivalent, an increase of 1.1 % from the same period last year.