Gazprom's Financials Grow

JSC Gazprom Neft reports an increase of 2.9% y-o-y in its net income for period ending June 30, 2007 after reporting its financial consolidated financial results.

Gazprom Neft's net income for the 1st half of 2007 was US $1.862 billion, and increase of 3.9% y-o-y. Net cash flows from operating activities amounted to $2.301 billion, which is 94% higher y-o-y.

Earnings before taxes, interest, depreciation and amortization (EBITDA) for the first half of 2007 increased by 3.3% as compared to EBITDA for the first half of 2006, and amounted to $2.710 billion.

Revenues for the first half of 2007 reduced by 8.7% to $9.243 billion y-o-y, that happened due to fall of world oil and oil products prices and change in the revenues structure.

Key Gazprom Neft half-year 2007 Financial Figures:

USD million 1H2007 1H2006

Revenues 9 243 10 123

EBITDA 2 710 2 624

Net Income 1 862 1 793

Besides, JSC Gazprom Neft oil production in the first half of 2007 increased by 1.4% up to 16.35MMTonn y-o-y (without 50% share in JSC "NGK Slavneft").

Refining throughput for the first half of 2007 increased by 17.2% up to 12.9MMTonn y-o-y.

JSC Gazprom Neft President Alexander Dyukov said: "Generally the results of JSC Gazprom Neft’s operations for the first half of 2007 can be considered to be successful. For the full-year 2007 we expect not only to meet our business plan, but also to exceed the financial and operating results for 2006".