Gazprom Neft Reports Q2 2010 Results

Moscow – August 18, 2010 – JSC Gazprom Neft has published on its official web site (ir.gazprom-neft.com) the Company's consolidated financial statements for Q2 2010 and H1 2010, which have been prepared in compliance with US GAAP standards.

Revenues in Q2 2010 rose 52% to USD 8,026 mln (Q2 2009: USD 5,269 mln). Growth was driven by an 8,3% increase in production volumes and rising oil and oil products prices. Revenues for the H1 2010 were $15 322 mln. - 61% up from the corresponding period of 2009.

Earnings before interest, taxes, depreciation and amortisation (EBITDA)* for Q2 2010 was up 3% to USD 1,550 mln (Q2 2009: USD 1,501 mln). The rise in EBITDA was partly offset by a higher tax burden and an increase in natural monopolies tariffs. H1 2010 EBITDA was $3 136 mln, 28% higher than in H1 2009.

Net income in Q2 2010 and H1 2010 increased by 3% and by 42% to USD 747 mln and 1,501 mln respectively as compared to net income adjusted for the one-off gain following the Sibir Energy acquisition in Q2 2009 (USD 725 mln) and in H1 2009 (USD 1,060 mln).

 Q2 2010 Q2 2009 % 1H 2010 1H 2009 %

Earnings

8,026 5,269 52 15,322 9,511 61
EBITDA* 1,550 1,501 3 3,136 2,459 28
Cash flow received from operations 1,483 994 51 2,364 1,648 43
Adjusted Net Income** 747 725 3 1,501 1,060 42

 

*EBITDA is defined as Earnings before Interest, Taxes, Depreciation, Amortisation, minority interest, foreign exchange gain, other non-operating expenses and includes JSC Gazprom Neft's share of EBITDA in affiliated companies.

**Net Income for 2Q09 and 1H09 is adjusted for one-off gain following Sibir Energy acquisition

For international media enquires:
Hudson Sandler
Tel. +44(0)20 7796 4133
gazpromneft@hudsonsandler.com