Gazprom Neft reports IFRS financial statements for 9M 2014

Press-release

JSC Gazprom Neft has published its unaudited consolidated financial results, in accordance with International Financial Reporting Standards for 9M 2014.

The increase in crude oil production and product sales, including sales through premium channels (small wholesale and Company retail network, aviation refueling and bunkering) drove a rise in sales* and adjusted EBITDA** for 9M 2014, with an increase of 11.5% (1,246.2 RUB bln) and 13.3% (285.5 RUB bln) respectively.

Net income attributable to the shareholders of JSC Gazprom Neft rose by 3.2% to 139.5 RUB bln due to the moderating effect of foreign exchange losses on the revaluation of the loan portfolio in foreign currency. Operating cash flow for 9M 2014 reached 228.2 RUB bln, an increase of 3.8 Y-o-Y.

Hydrocarbon production volumes in 9M 2014 increased by 5.3% Y-o-Y to over 357 mmboe (48.5 mmtoe), due to continued growth in production at Orenburg region and Priboskoye field, increased stakes in SeverEnergia and Nortgaz, an increase in natural gas production and the rate of associated gas utilization, as well as the growing use of new technologies at brownfields.

Refining throughput for 9M 2014 reached 33.5 million tonnes, up 4.2% Y-o-Y, due to an increase of gas condensate share in refining at Omsk refinery and higher level of maintenance in 2013.

Sales via premium channels rose by 9.5% to reach 19.4 million tonnes, with sales via Company retail sites rising 7.8% to 7.2 million tones.

* Sales – revenue before deducting export duties and similar payments.

** Adjusted EBITDA includes share of EBITDA from associated and jointly controlled companies recorded by equity accounting method.

Key Financial Data

3Q 20142Q 2014∆, %9M 20149M 2013∆,  %
431,647429,3380.5Sales*
(RUB million)
1,246,1551,117,34611.5
107,15394,35013.6Adjusted EBITDA**
(RUB million)
285,536251,91913.3
94,72081,12716.8EBITDA
(RUB million) (net of JV’s results)
251,594226,39711.1
51,93249,7834.3Profit attributable to the shareholders of Gazprom Neft
(RUB million)
139,531135,1543.2
82,61774,58210.8Cash flow from operations
(RUB million)
228,176219,9123.8

Key Operational Data

3Q 20142Q 2014∆, %9M 20149M 2013∆, %
122.85117.434.6Hydrocarbon production including share in joint ventures production (Mmboe)357.03339.045.3
11.4611.152.8Refining throughput at own refineries and joint ventures (MMtonnes)33.4532.094.2
7.236.609.5Sales volumes via premium channels (MMtonnes)19.4317.759.5
2.59 2.398.4Sales volume via retail network (MMtonnes)7.206.687.8