Gazprom Neft reports H1 2011 financial results

Press-release

Gazprom Neft publishes today on its website (ir.gazprom-neft.com) its consolidated financial results in accordance with US GAAP for H1 2011.

Increased sales volumes and higher crude and petroleum prices drove the Company’s revenue up by 39% to $21,341 mln in H1 2011 compared to H1 2010 (Q2 2011 revenue of $11,476 mln is 43% higher than in Q2 2010).

Earnings before interest, income tax, depreciation and amortization (EBITDA)* in H1 2011 comprised $4,945 mln or 58% higher than in H1 2010 due to an increase in refining throughput, product mix optimization and improved market conditions. In Q2 2011 EBITDA increased by 60% to $2,478 mln compared to Q2 2010.

Net income in H1 2011 increased by 74% to $2,604 mln versus H1 2010 driven primarily by growth in EBITDA. Q2 2011 resulted in $1,167 mln in net income (56% higher than in Q2 2010).

The increase in net income resulted in a 6% growth in net cash provided by operating activities H1 2011 compared to the same period of 2010 or $2,512 mln. Net cash provided by operating activities reached $1,891 mln in Q2 2011 or 28% higher than in Q2 2010.


2Q
2011

2Q
2010

∆, %

1H 2011

1H 2010

∆, %
2011-2010

Revenue

11,476

8,026

43.0

21,341

15,322

39.3

Adjusted EBITDA*

2,478

1,550

59.9

4,945

3,136

57.7

Cash flow from operating activities

1,891

1,483

27.5

2,512

2,364

6.3

Net income

1,167

747

56.2

2,604

1,501

73.5

EBITDA/Bbl

24.0

16.2

48.4

24.1

16.5

46.4

*EBITDA is defined as Earnings before Interest, Income Tax, Depreciation, Amortization, non-controlling interest, foreign exchange gain, other non-operating expenses and includes the Company share in EBITDA of equity affiliates.