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The Gazprom Neft board reviews the performance of the company’s investment programme in 2018

Press-release Efficiency

The Gazprom Neft Board of Directors has reviewed information on the company’s budgetary and investment programme performance in 2018.

Gazprom Neft showed considerable improvement in its financial and operational performance in 2018, both year-on-year and against target, with the company’s activities in many respects exceeding industry averages and making a significant contribution to achieving Gazprom Neft’s strategic goals.

Growth in hydrocarbon production, refining and premium sales, together with improved macroeconomic factors and managerial initiatives directed at improving efficiency and optimising expenditure, saw Gazprom Neft’s operating profit (EBITDA) up 45.1 percent on 2017 to RUB800 billion, with the company achieving a record net profit of RUB376.7 billion (IFRS) in 2018 — an increase of 48.7 percent.

Hydrocarbon production (including joint-venture interests) showed the growth of 3.5 percent year-on-year in 2018, reaching 92.9 million tonnes of oil equivalent (mtoe). Annual refining volumes across Gazprom Neft’s own and joint-venture facilities reached 42.9 million tonnes. Premium-channel oil-product sales increased 3.7 percent, to 27.1 million tonnes.

Its year-end results show Gazprom Neft remains one of the Russian oil industry’s leading companies on the basis of its financial performance, as well as aggregate profitability indicators including the internal rate of return (IRR), which in 2018 reached 19.7 percent.

Gazprom Neft’s investment programme in 2018 stood at RUB375 billion in total, allowing the company to maintain the pace of implementing key group projects, as planned.