Gazprom Neft’s revenue in the first six months of 2019 totalled $18.32bnn, an increase of 6.8% year-on-year, with higher production growth at major projects (the Novoportovskoye and Vostochno-Messoyakhskoye fields), a more favourable pricing environment, and effective management initiatives delivering adjusted EBITDA growth of 10.8% year-on-year, at $6.16bn. Net profit attributable to Gazprom Neft shareholders totalled $3.24bn, a 29.2% increase year-on-year. Higher operating cash flow resulted in a positive free cash flow of $1.89bn in H1-2019.Hydrocarbon production, including Gazprom Neft’s share in joint ventures, rose to 47.4 million tonnes of oil equivalent (mtoe) in H1-2019, a 5.6% increase year-on-year, as a result of higher production levels at the Novoportovskoye and Vostochno-Messoyakhskoye fields, as well as in the Orenburg region, together with a greater ownership interest in Arсtiсgas.
Refining volumes at Gazprom Neft’s own and joint venture refining assets amounted to approximately 20 million tonnes in H1-2019. These volumes are being impacted by planned repairs at the company’s Pančevo and Yaroslavl refineries.As part of its development of its petrochemicals business, as envisaged under the company’s long-term development strategy, Gazprom Neft, together with SIBUR, consolidated 100% of the charter capital in the Poliom polypropylene plant in Omsk: the integration of refining and petrochemicals assets allowing the company to improve efficiency by using refinery feedstocks to produce high-value-added products.
The company also increased sales of oil products through premium channels in H1-2019, with sales of bitumen materials, in particular, increasing by more than 15%, sales of lubricants by 6.7%, and sales of bunkering fuels by more than 22%.For the latest refining and petrochemical industry related videos, subscribe to our YouTube page.