Gazprom Neft has published its consolidated financial results for 1H 2015, prepared in accordance with International Financial Reporting Standards (IFRS).
The 1.4% year-on-year decline in revenues (including duties) was due to a drop in prices for oil and oil products on global markets. In spite of this, the growth in hydrocarbon production and sales volumes via premium channels drove a 12% increase year-on-year in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for 1H15, to 199.8 RUB bln.
Net profit for the reporting period attributable to the shareholders of Gazprom Neft rose by 28.3% year-on-year to 112.4 RUB bln. Higher growth in net profit attributable to shareholders of Gazprom Neft compared to growth in EBITDA resulted from the positive effect of foreign exchange rate differences from the revaluation of loans and credit lines.
Hydrocarbon production volumes in 1H 2015 increased by 20.5% compared to the previous year, to 282.06 mmboe (38.01 mmtoe). This growth was due to the continued development of SeverEnergia, consolidation of the share in NorthGas, increasing production at the Prirazlomnoye field in the Russian Arctic, the start of crude exports from Badra field in Iraq, an increase in associated petroleum gas utilization and the successful use of high-tech operations at brownfields.
Refining throughput for 1H 2015 reached 21.32 million tonnes, down 3.1% year-on-year due to lower refining volumes at the Moscow refinary, which were driven by a decline in demand in the Moscow oil market in 1Q15. Sales via premium channels rose by 1% year-on-year to reach 12.32 million tonnes, which is mainly due to retail network sales growth as well as the expansion of the airport network presence in Russia and internationally.