Gazprom Neft delivers net profit of more than ₽84 billion in Q1 2021
Gazprom Neft today announces its consolidated IFRS financial results for the three months ended 31 March 2021.
In Q1 2021, Gazprom Neft’s revenue increased 18.7% year-on-year to ₽611 billion. The recovery in the oil price and prices of petroleum products supported a 95.3% increase year-on-year in adjusted EBITDA1 (earnings before interest, taxes, depreciation and amortization), which reached ₽194 billion. Net profit attributable to Gazprom Neft PJSC shareholders was over ₽84 billion. The Company delivered a positive free cash flow of ₽42 billion, a 62.6% increase compared to Q1 2020.
The Company continues to demonstrate a high level of financial sustainability, with the net debt to EBITDA ratio standing at 1.06x as at 31 March 2021. Ruble-denominated loans accounted for more than 50% of the Company’s total debt as at the end of Q1 2021.
The easing of production restrictions under the OPEC+ deal resulted in a 0.5% increase in hydrocarbon production compared to Q4 2020 (including interests in joint ventures), to 24.09 million tonnes of oil equivalent (mtoe).
In Q1 2021, Gazprom Neft acquired two new licenses for geological prospecting of underlying horizons and “flank” fields in the Khanty-Mansi and Yamalo-Nenets Autonomous Okrugs, in line with its resource base development strategy.
“Despite the continued impact of the COVID-19 pandemic on the global oil market, Gazprom Neft has delivered a positive net profit for the fourth consecutive quarter. In contrast to the challenging first months of 2020, we have delivered a two-fold increase in EBITDA, while decreasing the net debt to EBITDA ratio just over 1x. These results were not only supported by a more favourable market environment but also driven by the Company’s effective actions, flexibility and swift response to external factors. We will continue to develop proactively all areas of our business throughout 2021, as well as taking opportunities for diversification. We will also prioritise the establishment of our long-term ESG goals, primarily focused on reducing CO2 emissions.”
