Gazprom Neft reports 26% year-on-year increase in net profit for 2017

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World oil (MOSCOW) -- Gazprom Neft today publishes preliminary consolidated IFRS financial statements for the 12 months ended Dec. 31, 2017.

Gazprom Neft reports 26% year-on-year increase in net profit for 2017

Company revenue including duties (sales) for the 12 months ended Dec. 31, 2017, is expected to reach RUB2 trillion, an increase of more than 18% year-on-year. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) is likely to reach RUB551 billion — up 20.8% year-on-year. Net profit attributable to Gazprom Neft PJSC shareholders for the 12 months of 2017 is expected to reach RUB253 billion, up 26.5% year-on-year. This growth in key financial metrics in 2017 is due to improved market conditions, the successful development of new initiatives in hydrocarbon production and in increasing retail sales, and effective management initiatives.

Improved operating cash flow and the completion of key infrastructure investments at new upstream projects resulted in free cash flow increasing to RUB65 billion in 2017.

Hydrocarbon production including Gazprom Neft’s share in production at joint ventures reached 89.75 million tonnes of oil equivalent in 2017, an increase of 4.1% year-on-year. This growth was attributable to increased production at new assets including the Novoportovskoye, Messoyakhskoye and Prirazlomnoye fields, as well as increasing production in Iraq.

Annual refining volumes at the company’s own and jointly-owned facilities totaled 40.1 million tonnes. Optimum throughput at the company’s refineries ensured that the company achieved maximum profitability despite the current market conditions. At the same time, sales of oil products through the company’s filling station network reached more than 11 million tonnes, with retail sales up 5.6% year-on-year.