Gazprom Neft Reports Q1 2010 Results

Moscow - May 25, 2010 – JSC Gazprom Neft has published on the Company’s official web site (ir.gazprom-neft.com) its consolidated financial statements for Q1 2010, prepared in compliance with US GAAP standards.

Revenues in Q1 2010 rose 72% to USD 7,296 mln (Q1 2009: USD 4,242 mln). Growth was driven by oil and oil product price rises together with increases in oil production and processing.

Net income increased by 117% to USD 727 mln (Q1 2009: USD 335 mln), although the Q1 2009 was impacted by a major one off foreign exchange loss.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for Q1 2010 were up 66% to USD 1,586 mln (Q1 2009: USD 957 mln). EBITDA growth was impacted by ruble appreciation and rises in tariffs.

Alexander Dyukov, Gazprom Neft Chief Executive Officer, commented:

‘Production growth of 9.4 per cent in the first quarter of 2010 over Q1 2009 is a good outcome. We will continue to focus on cost reductions, which have already started to yield planned results. We expect to build on the positive momentum achieved in the first quarter by maintaining production at existing fields and through the development of new fields. Our plans also include modernisation of plants and the completion of the rebranding of our petrol stations network.” 

 

 

 

 

 

 

 

Q1

2010

Q1

2009

%

 

Q1

2010

Q4

2009

%

 

Earnings

7,296

4,242

72

 

7,296

7,568

-3

 

EBITDA*

1,586

957

66

 

1,586

1,706

-7

 

Cash flow received from operations

881

666

32

 

881

1,062

-17

 

Net profit

727

335

117

 

727

638

14

 

EBITDA margin

22%

23%

-0,8 p.p.

 

22%

23%

-0,8 p.p

 

Net profit margin

10%

8%

2,1 p.p.

 

10%

8%

2,1 p.p.

 

EBITDA/bbl

24

17

46

 

24

27

-12

 

Net profit/bbl

13

6

108

 

13

12

7

 

             

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