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Gazprom Neft 9M 2020 net profit reaches RUB36.2 billion

Gazprom Neft announces its consolidated IFRS financial statements for the nine months (9M) and third quarter (Q3) of 2020.

Lower oil and petroleum product prices in the domestic and international markets continued to impact the Company’s financial performance in Q3 2020, as did the limited recovery in demand for energy resources under COVID-19 restrictions in the first half of 2020. In 9M 2020, Gazprom Neft’s revenue totalled RUB1.45 trillion and adjusted EBITDA (earnings before interest, income tax and depreciation) was RUB329.2 billion. Net profit attributable to Gazprom Neft PJSC shareholders reached RUB36.2 billion in 9M 2020.

The gradual recovery in oil prices and partial lifting of COVID-19 restrictions, as well as the optimisation of the Company’s investment programme and work on specific operating costs enabled the Company to significantly improve its financial performance and achieve a positive free cash flow.

Hydrocarbon production (including Gazprom Neft’s share in joint ventures) reached 72.1 million tonnes of oil equivalent (mtoe) in 9M 2020 (nearly unchanged year-on-year) as a result of the limits on oil production under the OPEC+ deal.

The Company has acquired subsoil usage rights to three new licence blocks, as well as expanding the area at 11 existing blocks in the Yamalo-Nenets and Khanty-Mansi Autonomous Areas. In August 2020, Gazprom Neft and Zarubezhneft established a joint venture to identify, explore and develop hard-to-recover reserves in the Khanty-Mansi Autonomous Area-Yugra, as well as developing effective technologies for these operations.

Refining volumes at Gazprom Neft’s own and joint-venture refining assets in 9M 2020 totalled 30.2 million tonnes. Recovering demand in Q3 2020 (compared to the previous quarter), as well as the completion of planned maintenance at the Yaroslavl Refinery resulted in a 15.7% Q-o-Q increase in refining volumes.

In 9M 2020, the Company sold 17.1 million tonnes of petroleum products through premium retail channels. The easing of COVID-19 restrictions had a positive impact on the sales of petroleum products through premium retail channels in Q3, with sales of motor fuels up 24.3% Q-o-Q, aviation fuel up 39%, and premium bitumen products up 21.4%. Gazprom Neft maintained its market share in specialized sectors, as well as continuing to expand its product range, including through digital solutions.

Gazprom Neft has also joined the United Nations Global Compact, the largest international corporate social responsibility (CSR) and sustainable development initiative, confirming its commitment to sustainable development principles, maximum transparency, partnerships, and exchange of best practices with the international community.

Financial highlights

Operational highlights

 

Source: Gazprom Neft

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