JSC Gazprom Neft announces today its unaudited consolidated results in accordance with accounting principles generally accepted in the United States of America (US GAAP).
Revenues in 4Q 2010 increased by 8% to USD 9,063 mln compared with 3Q 2010 and in 12M 2010 reached USD 32,772 mln – 36% above the corresponding period of 2009. Growth was driven primarily by higher volumes of hydrocarbon production and refining throughput, as well as the increase in oil prices.
Earnings before interest, income tax, depreciation and amortization (EBITDA)* for 4Q 2010 and 12M 2010 were up 3% and 21% to USD 2,079 mln and USD 7,226 mln compared with 3Q 2010 and 12M 2009 respectively. EBITDA growth was driven by the increase in oil and petroleum products prices, as well as higher volumes of refining and sales via premium channels. The rise in EBITDA was tempered by a higher tax burden and an increase in tariffs by natural monopolies.
Net income in 12M 2010 increased by 8% to USD 3,239 mln as compared to net income in 12M 2009. Operational cash flow in 12M 2010 increased by 55% from the corresponding period of 2009.
Alexander Dyukov, Gazprom Neft Chief Executive Officer, commented:
In assessing the results of Gazprom Neft in 2010, we can note with satisfaction stable growth of both financial and production figures. The past year was marked by a range of key events for the company in both upstream and downstream segments. In 2010 Gazprom Neft signed a contract with the government of Iraq on the development of the Badra field, consolidated a controlling stake in Sibir Energy and concluded a deal with NOVATEK to acquire 51% of SeverEnergia. In addition, Gazprom Neft together with partner TNK-BP reached an important investment decision on the development of the promising Messoyakha fields and established a separate entity for this purpose. Furthermore, Gazprom Neft has entered into a dynamic phase of refinery modernization, with the Omsk refinery in particular streaming the largest isomerization unit in Europe in 2010.
These achievements have allowed Gazprom Neft to continue to move towards achieving the Company's strategic goals. In 2011, management will concentrate on maintaining production at current fields, developing major upstream projects in Russia and abroad, integrating new acquisitions into Gazprom Neft's structure, modernizing refining assets and extending the Company's retail network.
|4Q 2010||3Q 2010||%||12 M 2010||12 M 2009||%|
|Operational cash flow||1,073||1,859||(45)||5,392||3,475||55|
*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.