Gazprom Neft, the oil arm of Russian gas giant Gazprom, reported on August 10 that a net income of 111 billion rubles for the first quarter of 2017, a year-on-year increase of 23.1%, driven by organic growth and management efficiency initiatives.

Gazprom Neft Chairman Alexander Dyukov said his company has delivered solid financial and operating results supported primarily by improved efficiencies across all business lines as well as strong organic growth.

“Gazprom Neft maintains a leading position in operational efficiency in the Russian oil sector, whilst continuing to consistently expand the scale and geography of its operations despite challenging market conditions,” Dyukov said. “We are focused on achieving our strategic objective to become a major international player with a diversified portfolio of assets across the value chain,” he added.

Adjusted EBITDA was at 246 billion rubles for the first quarter of 2017, an increase of 20.8% year-on-year, Gazprom Neft said.

According to the company, hydrocarbon production, inclusive of joint venture operations, was up 5.3% year-on-year to 44.02 million tonnes of oil equivalent in the first quarter of 2017.

Gazprom Neft said the company’s revenue in the first quarter of 2017, including duties (sales), increased by 22.5% year-on-year to 944 billion rubles. Adjusted EBITDA grew by 20.8% year-on-year to 246 billion rubles, supported by the successful development of new projects, recovery in crude oil and petroleum products prices and management efficiency initiatives.

The net income attributable to Gazprom Neft’s shareholders amounted to 111 billion rubles in the first quarter of this year, an increase of 23.1% year-on-year.

In the first quarter of 2017, hydrocarbon production, inclusive of joint venture operations, reached 44.02 million tonnes of oil equivalent, an increase of 5.3% year-on-year. This was driven by production ramp-up at the new Novoportovskoye, Prirazlomnoye and Messoyakha fields, as well as in Iraq.

Gazprom Neft said the reduced volume of oil refining in the first quarter of 2017 was in-line with the Russian oil company’s annual production plan, which factors in scheduled overhaul of large-process ring units at the Moscow Refinery as well as crude oil distillation units (CDU-4) at the YaNOS Refinery.

At the same time, Gazprom Neft increased its retail sales in the fuel market by 6.1% and sold more than 5.2 million tonnes of petroleum products through its own filling station network.

https://www.neweurope.eu/article/boosted-iraqi-oil-russias-gazprom-neft-net-income-23/