Gazprom Neft’s Board of Directors reviews the interim results of its 2019 investment programme

Press-release Efficiency

The Gazprom Neft Board of Directors has reviewed the implementation of its 2019 investment programme and budget based on the company’s performance in 1H 2018.

Gazprom Neft’s investment programme is allowing it to maintain the planned pace of operations on key projects in the upstream, refining and sales sectors, as well as allowing it to achieve its medium-term and strategic goals. Gazprom Neft delivered positive growth in its 1H 2019 operational and financial performance, with hydrocarbon production including the company’s interests in joint ventures reaching 47.4 million tonnes of oil equivalent (mtoe), a 5.6-percent increase year-on-year: this growth being driven by higher production at the Novoportovskoye and Vostochno-Messoyakhskoye fields in the Orenburg Region, as well as an increased shareholding in Arcticgas.

Refining volumes at the company’s own and joint-venture businesses reached 20 million tonnes in 1H 2019, with the company expanding its sales of oil products through premium sales channels: sales of bunkering fuels were up more than 22 percent, bitumens more than 15 percent, and lubricants 6.7 percent.

Gazprom Neft’s net profit (IFRS) was up 29 percent year-on-year, reaching RUB215 billion. Adjusted EBITDA was up 10.8 percent, to RUB408 billion. The company maintains its leading position in Russia’s oil industry in terms of production growth, and remains one of the industry’s leaders in terms of efficiency and the rate of improvement in its financial indicators.