Gazprom Neft Q1 2018 net profit up more than 12 percent year-on-year
- RUB69.7 billion — Gazprom Neft’s net profit for Q1 2018, a 12.4 percent increase on Q1 2017
- Adjusted EBITDA for the first three months of 2018 up 32.3 percent year-on-year, to RUB155.8 billion
- Free cash flow (FCF) for the first three months of 2018 standing at RUB11.6 billion
Gazprom Neft’s revenue in the first three months of 2018 grew by 14.5 percent year-on-year, to RUB520.6 billion**. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) increased by 32.3 percent year-on-year, to RUB155.8 billion. This growth was achieved through the successful development of new projects in hydrocarbon production, higher retail sales, and a recovery in market conditions, as well as through effective initiatives on the part of Gazprom Neft management. Net profit attributable to Gazprom Neft PJSC shareholders for the first three months of 2018 was RUB69.7 billion, an increase of 12.4 percent.
Increased cash flow from operations, and the completion of key infrastructure investments in new upstream projects, resulted in positive free cash flow in the first three months of 2018 in the order of RUB11.6 billion.
Hydrocarbon production in Q1 2018, including Gazprom Neft’s share in joint ventures, reached 22.2 million tonnes of oil equivalent (mtoe), an increase of 1.1 percent year-on-year: this growth in production volumes having been achieved as the result of production at new fields, including the Novoportovskoye and Messoyakhskoye fields, as well as higher production at Arktikgaz fields.
Refining volumes at the company’s own refineries, as well as at jointly owned refining facilities, increased by 15.4 percent year-on-year, reaching 10.1 million tonnes.
The company increased sales of oil products through premium retail channels by 9.7 percent year-on-year in the first quarter of this year, reaching 6.1 million tonnes. Total retail sales through the Gazprom Neft filling station network increased by 6.4 percent in Q1 2018, reaching 2.7 million tonnes of oil products.