Page 11 - FSUOGM Week 08 2021

FSUOGM PERFORMANCE FSUOGM

Gazprom Neft's Q4 numbers

beat forecasts

RUSSIA GAZPROM Neft’s earnings beat forecasts in was despite OPEC+ cuts coming into force in the
the fourth quarter, with net income coming in spring.
The Russian oil industry at $1.07bn, or 9% above the consensus forecast, Overall production was stable at 96mn
has stablised. while EBITDA was recorded at $1.82bn, surpass- tonnes, or 1.94mn barrels of oil equivalent per
ing predictions by 18%. day (boepd), as Gazprom Neft ramped up gas
“We had expected a roughly flat quar- supply by 5.5% to 43bn cubic metres. The growth
ter-on-quarter performance at the EBITDA line, in gas extraction was thanks to the commission-
and Gazprom Neft managed to do even some- ing of new wells at the Arcticgas and Novo-
what better, showing the situation in the Russian portovskoye fields, and increased utilisation of
oilfield has indeed stabilised,” analysts at BCS associated petroleum gas.
Global Markets wrote. Total hydrocarbon extraction rose 2.1% to
Q4 revenue was $7.2bn, in line with fore- 1.93mn boepd, on the back of a seasonal hike in
casts, while EBITDA on a per barrel basis was gas demand.
flat q/q at $11.6 per barrel of oil equivalent (boe). “Not only have we posted a net profit for
Free cash flow (FCF) was strong, amounting to this challenging year – we have also maintained
around $1.12bn, down 10% q/q but up from an production volumes at 2019 levels: the result
average of just above $0.3bn in the previous six of effective asset management and higher gas
quarters. Operating cash flow increased 45% production,” CEO Alexander Dyukov said in a
from the recent average to $2.7bn. statement.
Implied capital expenditure in the three- Before OPEC+ cuts were agreed, Gazprom
month period was $1.6bn, in line with the Neft had been projecting a 1% uptick in output
six-quarter average, while Gazprom Neft’s net last year.
debt to EBITDA ratio improved 12% to 1.32. Refining throughput fell 2.6% in 2020 to
Gazprom Neft’s liquids output held relatively 40.4mn tonnes (811,000 bpd), down to the
firm last year, slipping by just 2% year on year impact of the pandemic on demand, Gazprom
to 48.2mn tonnes (967,800 barrels per day). This Neft said. ™

Week 08 24•February•2021 www. NEWSBASE .com P11