- Net profit reached ₽357 billion in 9M 2021
- Adjusted EBITDA up more than two-fold year-on-year, at ₽700.6 billion
- Net debt to EBITDA ratio stands at 0.32x as at the end of 3Q 2021
Gazprom Neft (“the Company”) today announces its consolidated IFRS financial statements for the nine months (9M) and third quarter (3Q) ended 30 September 2021.
In 9M 2021, revenue amounted to ₽2.162 trillion (an increase of 49.1% year-on-year), with adjusted EBITDA1 (earnings before interest, taxes, depreciation, and amortisation) up 112.8% to ₽700.6 billion. This was driven by increased production and refining volumes, as well as a more positive price environment for oil and petroleum products. Net profit attributable to Gazprom Neft PJSC shareholders increased 10 times and reached ₽357 billion in 9M 2021.
In 3Q 2021, Gazprom Neft achieved its lowest leverage in 12 years, with a net debt to EBITDA ratio of 0.32x. A two-fold increase in operating cash flow, supported by the phased realisation of the company’s investment programme, also resulted in sizeable free cash flow of₽384.4 billion in 9M 2021.
Hydrocarbon production, including Gazprom Neft’s share in joint ventures, increased 2.7% in 9M 2021, reaching 74.1 million tonnes of oil equivalent (mtoe). The growth was driven by an increase in production at new projects, the commissioning of the Tazovskoye field in June 2021, as well as the launchof an integrated gas treatment complex at the Vostochno-Messoyakhskoye field in July 2020.
Refining volumes at Gazprom Neft’s own and joint-venture refining assets increased 7.5% in 9M 2021, reaching 32.4 million tonnes. This growth was driven by recovering demand in line with the gradual lifting of COVID-19 restrictions, as well as the commissioning of the new EURO+ complex at the Moscow Refinery.
In 9M 2021, the company delivered a 12.2% increase in premium-channel petroleum product sales, which comprised 19.2 million tonnes. Motor fuel sales increased 11.3% due to increasing demand following the gradual easing of COVID-19 restrictions. Average daily per-station sales across the Gazpromneft petrol station network reached 19.5 tonnes per day in Russia in Q3 2021, exceeding the
Decarbonisation and environmental protection continue to be among the company’s top priorities, as Gazprom Neft is implementing a number of unique technological projects aimed to support this process. The company put into commercial operation a modular unit for separating associated petroleum gas (APG) into usable fractions. This equipment is helping to cut the company’s carbon footprint by improving efficiency in APG processing. Gazprom Neft is also planning to develop projects in carbon capture and storage and hydrogen energy, including in partnership with companies from various industries, as well as developing minimal-carbon-footprint aviation biofuels in partnership with Aeroflot.
“Gazprom Neft proactively increased hydrocarbon production in the third quarter. For the full year, the company is expected to produce over 100 million tonnes of oil equivalent for the first time in its history, with further growth potential next year.
Thanks to recovering demand for oil, and the company’s prompt and effective response to the changing market environment, we have demonstrated positive dynamics across our key financial indicators. The company’s leverage has declined to its lowest level in 12 years, with the net debt to EBITDA ratio at 0.32x. Gazprom Neft is maintaining its practice of paying interim dividends, with the Board of Directors recommending a record dividend of ₽40 per ordinary share for 9M 2021.
We are continuing to develop projects aimed at cutting our carbon footprint. In 3Q 2021, Gazprom Neft signed agreements with Sovcomflot and Aeroflot, leading Russian transport companies to collaborate in producing more sustainable fuels.
In the near future the Gazprom Neft Board of Directors will review the company’s new 2035 strategy, which will set out our sustainable development goals. We have already announced one of these goals: a 30% reduction in our operational carbon intensity by 2030.”Alexander Dyukov CEO and Chairman of the Management Board of Gazprom Neft
1 Adjusted EBITDA includes proportional EBITDA from associated and jointly controlled companies, equity accounting method.
|3Q||2Q||∆, %||9 MONTHS||∆, %|
|823,790||726,780||13.3||Revenue (₽ millions)||2,161,550||1,449,574||49.1|
|241,322||218,566||10.4||EBITDA (₽ millions)||633,610||276,452||129.2|
|266,008||241,047||10.4||Adjusted EBITDA (₽ millions)||700,607||329,232||112.8|
|139,734||133,078||5.0||Profit attributable to Gazprom Neft PJSC shareholders (₽ millions)||356,968||36,193||886.3|
|275,526||257,943||6.8||Cash flow from operations (₽ millions)||662,977||309,269||114.4|
|179,938||162,056||11.0||Free cash flow (₽ millions)||384,437||9,193||4,081.8|
|0.32||0.59||(45.6)||Net debt / EBITDA||0.32||1.50||(78.7)|
|3Q||2Q||∆, %||9 MONTHS||∆, %|
|189.02||179.99||5.0||Hydrocarbon production including Gazprom Neft’s share in joint ventures (mboe)||547.03||532.58||2.7|
|25.60||24.37||5.0||Hydrocarbon production including Gazprom Neft share in joint ventures (mtoe)||74.06||72.09||2.7|
|11.77||10.68||10.2||Refining throughput at the company’s own and joint-venture refineries (million tonnes)||32.43||30.17||7.5|
|7.22||6.49||11.2||Sales volumes through premium channels (million tonnes)||19.18||17.10||12.2|
|2.88||2.61||10.3||Sales volumes through petrol stations (million tonnes)||7.95||7.13||11.5|