The structuring and management of Gazprom Neft’s debt portfolio in 2018 were reviewed by the company’s Board of Directors on 25 January 2019.
Higher debt-market interest rates in the second half of the year notwithstanding, the company achieved significant outcomes in managing its debt portfolio in 2018, meeting its financial obligations as required and utilising the most effective instruments available in its implementation, as well as successfully taking various initiatives to optimise the structure and nature of its debt portfolio, including negotiating improved terms for existing credit lines and facilitating the unscheduled advance refinancing of its liabilities. The company significantly reduced its net debt/EBITDA ratio year-on-year, optimising the structure of its debt portfolio by increasing the proportion of long-term ruble-denominated obligations, and increasing the average repayment term while concurrently reducing interest rates on its ruble debt.
Gazprom Neft signed a range of credit agreements with major Russian banks as part of its refinancing programme in 2018, as well as involving these in previously agreed credit lines.
Gazprom Neft is committed to continuing its work on improving the management of its debt portfolio throughout 2019 by selecting optimum instruments for debt financing in line with current conditions and market performance.