Gazprom Neft has published its consolidated financial results in accordance with International Financial Reporting Standards (IFRS) for FY 2014.
Overall sales (revenues before deducting export duties and similar payments) grew 12.4% (1,690.56 RUB bIn) as a result of increased hydrocarbon production and a significant increase in sales via premium channels (small wholesale, retail network, aviation refueling and bunkering activities), in addition to the acquisition of stakes in several assets in 2014.
Growth in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was 1.7% (342.61 RUB bln), limited by significant changes in the macro environment in the second half of 2014. Net profit was significantly affected by foreign exchange losses related to the revaluation of the Company’s loan portfolio as a result of changes in the ruble exchange rate. Gazprom Neft net profit, adjusted for losses related to exchange rate differences, increased in 2014 by 3.7% to 188.45 RUB (bln). Net profit before adjustments for exchange rate impacts was 122.09 RUB (bln).
Total hydrocarbon production increased 6.7% year on year to 488.1 million barrels of oil equivalent (66.25 million tonnes of oil equivalent). The major contributors were continued output growth from the Priobskoye and Orenburg fields, higher utilization of associated gas, state-of-the-art technology introduced at the Company’s mature assets, the Group’s increased share in Arktikgaz and its acquisition of beneficial ownership in the Northgas asset.
Total refining throughput grew 2.0% in 2014 to 43.48 million tonnes as a result of a higher ratio of condensate feedstock and a more efficient refinery maintenance plan at the Omsk refinery. Output of light products was increased and logistical bottlenecks reduced in the shipment of heavy products. Sales through premium channels reached 25.74 million tonnes, an increase of 7.5% year on year. The average throughput of Gazprom Neft retail stations in Russia increased 5.4% to 20.0 tonnes per day, one of the industry’s highest daily throughput levels.