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Gazprom Neft reports record financial performance for 2017

Gazprom Neft published consolidated financial accounts for the 12 months ended 31 December 2017.

Gazprom Neft reports record financial performance for 2017 Gazprom Neft reports record financial performance for 2017


Gazprom Neft published on February 28, 2018, consolidated financial accounts (IFRS) for the 12 months ended 31 December 2017. The company achieved record results across a number of financial metrics in 2017.

 

Company revenue including duties (sales) was in excess of RUB2 trillion, an increase of more than 18 % year-on-year. Adjusted EBITDA was up 20.8 % on 2016, reaching RUB551 billion - the highest level in the company’s history. Net profit attributable to Gazprom Neft shareholders for this accounting period increased 26.5 % year-on-year, reaching RUB253 billion.

 

This significant growth in key financial metrics in 2017 is the result of the company’s successful development of new hydrocarbon production projects, higher retail and premium sales and effective initiatives led by Gazprom Neft’s senior management team.

 

The increase in the global oil price also had a positive impact on the company’s financial performance. The company moved into positive free cash flow (FCF) in 2017, having completed key infrastructure investments in major new upstream projects, with this figure reaching RUB65 billion.

 

Gazprom Neft’s 2017 year-end results position the company among the top 3 oil producers in Russia. Total production hydrocarbon production (including shares in production at joint enterprises) reached 89.75 mtoe in 2017, 4.1 % higher than in 2016. This growth was achieved through higher production at new fields, including the Novoportovskoye, Vostochno-Messoyakhskoye and Prirazlomnoye fields, as well as higher production in Iraq.

 

Annual refining volumes at the company’s own and jointly-owned facilities totalled 40.1 million tonnes. Optimum throughput at the company’s refineries ensured that the company achieved maximum profitability despite the current market conditions. More than 26 million tonnes of oil products were sold through Gazprom Neft’s premium retail channels last year, with sales of oil products through the company’s filling station network, in particular, reaching more than 11 million tonnes, an increase of 5.6 %.

 

In addition to this, average daily per-station sales across the Gazprom Neft filling station network in Russia increased by 4.2 %, to more than 20 tonnes per day, making the company Russia’s market leader in fuel retailing. Gazprom Neft continued expanding its geographic presence at airports, increasing retail sales of aviation fuels by 19 %.

 

The company entered new markets abroad, including through the launch of innovative bitumen products, increasing sales of bitumen materials by 20 %, as well as increasing production of oils and lubricants by 14 %.

Commenting on the company’s year-end results for 2017, Gazprom Neft CEO Alexander Dyukov said: «Gazprom Neft has been the Russian oil industry market leader in terms of efficiency for many years. This year has seen us achieve record financial results with the highest net profit in the company’s history. One of the company’s key priorities remains ensuring a high dividend yield and not only have we delivered a higher dividend in absolute terms in 2017, but we have also returned to paying interim dividends. In 2017 the company’s share price increased to set another record, suggesting considerable investor interest in the company.»

 

To read the news in Russian.

 

Source : Neftegaz.RU