Gazpromneft publishes report for Q2 and H1

In the first six months of 2014, the company’s proceeds grew by 13.9% y/y to 814.5 billion rubles, EBITDA increased by 18.5% to 178.4 billion rubles, and the net profit grew by 12. 9% to 87.6 billion rubles. The proceeds growth was caused by favourable market conditions, namely the rise in prices for oil and oil products on the domestic and international markets with an increase in hydrocarbon extraction and production plus the sale of oil products. In the second quarter of 2014, the oil processing and export of oil products were more profitable than the export of crude oil. As it was already mentioned, higher prices for crude oil and oil products on the foreign markets were accompanied by lower export duty in the first six months of 2014. The increase in the Gazpromneft’s operating costs corresponded to the proceeds growth and made up 16.5%. The main reason is the growth of costs for the purchase of oil and oil products, the production costs and the costs for taxes and levies. A twofold increase in financial losses of the oil company because of weakening of the ruble negatively affected the amount of the company’s net profit, despite the fact that a substantial part of the Gazpromneft’s debt was denominated in foreign currency.