Russian Gazprom Neft's Q2 output up 7.7% on year
Moscow (Platts)--3Aug2011/637 am EDT/1037 GMT
Gazprom Neft, the oil arm of Russian gas giant Gazprom, said Wednesday
it raised hydrocarbons production 7.7% year-on-year to 103.14 million barrels
(1.13 million barrels/day) of oil equivalent in the second quarter of 2011.
Of the total, the company's crude output amounted to 91.01 million
barrels (1.0 million b/d), up 0.4% year-on-year.
Commercial gas output amounted to 72.77 billion cubic feet (2.06 billion
cubic meters) in the second quarter, the company said, providing no
Gazprom Neft's gas production jumped 136.9% year-on-year to 144.06
billion cubic feet in the first six months of the year, it said.
Gas output was boosted by the launch of full-scale gas production at the
Cenomanian levels at Muravlenkovskoye and Novogodneye fields in late 2010.
The two fields are expected to add around 4 Bcm/year to the company's gas
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The figures include Gazprom Neft's shares in equity affiliates.
In the downstream sector, the company increased oil products output to
9.75 million mt in H1, up 17.6% year-on-year, as it loaded in full the
company's refining capacities in Russia following a jump in the domestic
demand and an improved refining margin, the company said.
NET INCOME UP 56% ON YEAR TO $1.167 BIL
Gazprom Neft's net income rose to $1.167 billion in Q2, up 56.2% on the
year, the company said in its US GAAP consolidated financial results.
Net revenue in the second quarter was up 43% year-on-year to $11.476
billion, due to increased sales volumes and higher crude and oil product
Gazprom Neft's second-quarter adjusted EBITDA was up 59.9% on the year
to $2.478 billion compared with the same period of 2010, "due to an increase
in refining throughput, product mix optimization and improved market
conditions," the company said.
Of the total revenue, crude oil sales in the international market
amounted to $2.74 billion in Q2, while crude sales in Russia were at $1
million. Crude exports to the Commonwealth of Independent States, which
unites 12 former Soviet republics, were at $330 million.
Oil products sales abroad were at $3.91 billion, while oil products
sales in Russia amounted to $4.09 billion.
The company's average price for crude sales on the international market
was $782.64/mt (around $107.2/b) in the first half of the year, up 43% from
the same period a year ago, Gazprom Neft said.
At the same time, the average price of crude sold in the CIS countries
were at $423.24/mt in the period, up 10.9% year-on-year.
Gazprom Neft exported 6.74 million mt of crude to countries outside the
CIS in H1, down 17.7% year-on-year, as it increased crude processing at its
Exports to the CIS totaled 1.42 million mt, down 10.1% on year.
The average price for its oil products exports (including export duty)
was $779.22/mt in H1, up 36.7% on the year, while on the domestic market it
averaged $648.74/mt (up 29.4%).
Gazprom Neft exported 6.45 million mt of oil products in H1, up 8.8%
year-on-year, with domestic products sales amounting to 11.51 million mt, up
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