OAO "Gazprom Neft" has published its Q3 2008 and 9 months 2008 US GAAP consolidated financial statements

According to the released financial results under US GAAP, net income reached $1 594 mln. in 3 Q 2008, which exceeds the Q3 2007 result by 66,6% ($ 957 mln.)

Earnings before interest, income tax, depreciation and amortization (EBITDA) in Q3 2008 amounted to $2 642 mln. increased by 70,1% compared to Q3 2007 EBITDA ($1 553 mln.)

Revenues in Q3 2008 rose by 77,3% to $9 638 mln. vs. $5 435 mln. in Q3 2007.

Net income in 9 months 2008 was $5 201 mln., which exceeds the 9M 2007 result by 84,5% ($ 2 819 mln.)

EBITDA in 9M 2008 increased by 73% compared to 9M 2007 result and reached the level of $ 7 761 mln.

Revenues in 9M 2008 amounted to $27 315 mln., that is 86,1% higher than in the same period of 2007.

The improvement of financial results in Q3 2008 and 9 M 2008 was due to an increase, firstly, in oil prices at the domestic and global markets (the average spot Urals price was $108,12 vs. $63,89 for the 9 months 2008 and 2007, respectively). The company extended its refining share in the oil balance for the 9 months 2008 (+8,4%) and increased oil and oil products distribution (+8,2 and +7,4%, respectively).

Q3 2008 and 9 M 2008 key financial results:

(mln. $)III Q 2008III Q 2007change, %9 M 20089 M 2007change, %
Revenues9 6385 43577,33%27 31514 67886,09%
EBITDA*2 6421 55370,12%7 7614 48573,04%
Net Income1 59495766,56%5 2012 81984,50%

*EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, minority interest, foreign exchange gain (loss), other income and expenses