For the first time Gazprom Neft publishes quarterly consolidated financial results

For the first time in its history JSC Gazprom Neft publishes the consolidated financial statements for the third quarter and for 9 months of 2007 drawn up in compliance with US GAAP.

According to the published financing results, the earnings of JSC Gazprom Neft in the third quarter of 2007 increased by 0.5 % vs. the same index for the previous year and made USD 5,434 million. Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) are $1,449 million that is by 7.2 % larger vs. the third quarter of 2006.

Earnings of JSC Gazprom Neft for 9 months of 2007 made $14,677 million that is 5.5 % less vs. the similar index of the previous year. Decrease in earnings is due to the changes in sales and marketing structure of the company. Under the high margin conditions of refining JSC Gazprom Neft increased the volume of oil processing and selling of oil products at the domestic market with simultaneous decrease in export of oil and oil products.

However, during the period from January to September, 2007 Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) increased by 4.6 % amounting to $4,159 million. Net profit for 9 months of 2007 was $2,819 million that corresponds to the index of the same period of the previous year. Net cash flow received from operations during 9 months of 2007 was $3,614 million that is 49 % more than the similar rate of the previous year.

($ million)The 3d quarter of 2007The 3d quarter of 20069 months of 20079 months of 2006
Earnings5 4345 40814 67715 531
EBITDA 1 449 1 352 4 159 3 976
Net profit 957 1 034 2 819 2 827