Gazprom Neft reports unaudited IFRS financial results

Press-release

Gazprom Neft today announces its unaudited consolidated financial results for 9M 2013, which have been prepared in accordance with International Financial Reporting Standards (IFRS).

An increase in production and sales of petroleum products via premium distribution channels (retail and the Company’s own chain of petrol stations, sales of kerosene and bunkerage) led to an improved adjusted EBITDA* (earnings before interst, taxes, depreciation and amortisation) for the first 9 months of 2013, which rose by 2.9% Y-o-Y to 251.92 billion rubles. Net profit growth was up 0.4% to 135.15 billion rubles during the same period, constrained by losses from exchange rate differences caused primarily by a revaluation of the credit portfolio.

Hydrocarbon production in the first 9 months of 2013 reached 339.04 mmboe (46.15 mmtoe), a 4% increase Y-o-Y due to continued production growth at the Priobskoye field, deposits in the Orenburg region and SeverEnergia, and the successful application of hi-tech operations at mature fields. Refining throughput decreased 1.8% Y-o-Y to 32.09 million tonnes in the first 9 months of 2013 due to planned maintenance at Company refineries. Sales in premium distribution segments reached 17.75 million tonnes and average petrol station sales in Russia grew by 8.1% to 18.6 tonnes per day.

CAPEX** increased by 11.4% Y-o-Y driven mainly by new project development and the use of new technology to maintain production at mature fields.

* adjusted EBITDA includes the EBITDA share of associated and jointly controlled companies recorded by the equity accounting method
** Capital expenditure does not include changes in amounts advanced or construction materials

Key Financial Data

Q3 2013Q2 2013 ∆, % 9 months∆, %
20132012
402 312359 08012,0Sales (revenue before export duties and similar payments, RUB million)1 117 3461 125 533(0,7)
96 11668 52640,3EBITDA (RUB million)236 280230 333 2,6
101 35273 87437,2Adjusted EBITDA* (RUB million)251 919 244 894 2,9
57 533 38 05451,2Profit attributable to the shareholders of Gazprom Neft (RUB million)135 154134 677 0,4
94 02781 95714,7Cash flow from Operations219 912179 43222,6
0,46 0,44 5,0Net Debt / EBITDA0,460,56(17,9)

 Key Operational Data

Q3 2013Q2 2013∆, %9 months∆, %
20132012
114,17113,110,9 Hydrocarbon production including our share in joint ventures (mmboe)339,04326,004,0
10,90 10,83 0,6  Refining throughput at own refineries and joint ventures (million tonnes)32,0932,67(1,8)
6,77 5,86 15,5  Sales volume through premium channels (million tonnes)17,7517,143,6
2,382 ,265,5 Sales via petrol stations (million tonnes)6,685 ,8913,4