Gazprom Neft sees profits slip

Gazprom07 August 2013, News Wires – Russia’s Gazprom Neft has seen first-half net profits dip 1.4% year-on-year to 77.621 billion roubles ($2.35 billion) despite a rise in output as foreign exchange costs hampered the net result.

Gazprom Neft said foreign exchange losses had resulted from the revaluation of its credit portfolio, adding that its profits were also hit by a rise in depreciation expenses.

The state oil producer said growth in output as well as a rise in premium sales of petroleum products had sent six-month revenues up 1.8% year-on-year to 590.715 billion roubles ($17.94 billion).

Total output rose 3.6% to 224.87 million barrels of oil equivalent in the first half.

Gazprom Neft said it lifted production with ongoing development of major projects such as its cluster of fields in the long-producing Orenburg region as well as greater use of new technology at mature fields.

On a quarterly basis, profits slumped 3.8% to 38.05 billion roubles ($1.15 billion) compared to three months earlier as falling prices and an export duty lag outweighed a 1.2% rise in production and increases in refining throughput and domestic petroleum product sales.

– Upstream

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