Gazprom Neft 2Q Earnings Soar to $1.17B

Gazprom Neft published on its website its consolidated financial results in accordance with US GAAP for 1H 2011.

Increased sales volumes and higher crude and petroleum prices drove the Company's revenue up by 39% to $21.341B in 1H 2011 compared to 1H 2010 (2Q 2011 revenue of $11.476B is 43% higher than in 2Q 2010).

Earnings before interest, income tax, depreciation and amortization (EBITDA) in 1H 2011 comprised $4.945B or 58% higher than in H1 2010 due to an increase in refining throughput, product mix optimization and improved market conditions. In 2Q 2011 EBITDA increased by 60% to $2.478B compared to 2Q 2010.

Net income in 1H 2011 increased by 74% to $2.604B versus 1H 2010 driven primarily by growth in EBITDA. 2Q 2011 resulted in $1.167B in net income (56% higher than in 2Q 2010).

The increase in net income resulted in a 6% growth in net cash provided by operating activities 1H 2011 compared to the same period of 2010 or $2.512B. Net cash provided by operating activities reached $1.891B in 2Q 2011 or 28% higher than in 2Q 2010.