Gazprom Neft’s Board of Directors Reviews 1H 2013 and Full year Results
Gazprom Neft’s Board of Directors Reviews 1H 2013 and Full year Results
20 September 2013 , press-releaseGazprom Neft’s Board ofDirectors has reviewed the performance ofthe company’s investment programme in1H2013. The investment programme runs inaccordance with the previously approved plans tomeet the company’s medium-term and strategic objectives. Gazprom Neft remains anindustry leader interms ofefficiency based onoperating profitability, return oninvested capital and operating cash flow per barrel ofoil equivalent.
Gazprom Neft produced 30.61 million tonnes ofoil equivalent inthe first six months of2013, a3.7% increase from 1H2012/The company isamong the industry leaders interms ofproduction growth. Total refining throughput was 21.19 million tonnes, almost flat compared with the previous year. Average sales per petrol station inRussia rose9% to18tonnes per day. Revenues and EBITDA in1H2013 were boosted byhigher hydrocarbon production and petroleum product sales through premium channels, rising 1.8% toRUB 590.72 billion and by0.9% toRUB 150.57respectively, from the previous year.
The Board has approved anadjusted capex programme for 2013, increasing itby0.6% toRUB 245.5billion. This increase isbased onhigher investment inupstream and downstream than previously planned, and the redistribution offunds between different projects.
The increased investment inupstream ispartly due toahigher number ofwells drilled and adoubling ofthe number ofmore expensive horizontal wells.186 wells were drilled, compared with the 90wells planned previously. The company’s major projects this year have included its first ever four-shaft well and the completion ofeight-stage fracking. Bybroadening its use ofnew technology and working with hard-to-recover and non-conventional reserves, Gazprom Neft expects tobring upto300 million tonnes ofadditional reserves onstream, from reserves previously considered unprofitable. The company has increased investment inits assets inOrenburg region, where there has been asteady growth inhydrocarbon production.
Investment indownstream isaimed atraising the quality offuels produced and improving refining depth atthe company’s refineries. Specifically, the Moscow refinery has launched alight naphtha isomerisation unit and ahydro-processing facility for catalytic gasoline, and has refurbished adiesel hydro-processing unit. These projects have enabled
the Moscow refinery toswitch toproducing Euro-5 standard products, significantly ahead ofschedule. Gazprom Neft has thus completed its transition toproduce fuel that meets the highest ecological standards atall ofits sites.
The Board ofDirectors also reviewed the work ofthe company’s internal audit department.19audits were conducted in1H2013, 12ofwhich assessed business process efficiency atthe company and its subsidiaries.
