Gazprom Neft posts FY 2010 net income of $3.239 billion

Russian oil producer Gazprom Neft has posted a FY2010 net income of $3.239 billion under U.S. GAAP.

­The FY net result is up 8% on the FY 2009 net profit of $3.013 billion, with FY EBITDA rising 21% year on year to $7.226 billion, on the back of a 36% year on year increase in FY revenues to $32,772 billion.

For 4Q 2010 Gazprom Neft posted a net income of $873 million, up 1% quarter on quarter, with 4Q EBITDA rising 3% quarter on quarter to $2.079 billion, as 4Q 2010  revenues rose 8%  quarter on quarter to $9.063 billion.

The company attributed the results primarily to higher oil and petroleum products prices, as well as higher volumes of refining and sales via premium channels. The rise in EBITDA was tempered by a higher tax burden and an increase in tariffs by natural monopolies. The growth in revenues was driven primarily by higher volumes of hydrocarbon production and refining throughput, as well as the increase in oil prices.

Alexander Dyukov, Gazprom Neft Chief Executive Officer, was upbeat by the results saying that the group has successfully realized strategic plans and obtained essential agreements on prospective projects  

“In assessing the results of Gazprom Neft in 2010, we can note with satisfaction stable growth of both financial and production figures. The past year was marked by a range of key events for the company in both upstream and downstream segments. In 2010 Gazprom Neft signed a contract with the government of Iraq on the development of the Badra field, consolidated a controlling stake in Sibir Energy and concluded a deal with Novatek to acquire 51% of SeverEnergia. In addition, Gazprom Neft together with partner TNK-BP reached an important investment decision on the development of the promising Messoyakha fields and established a separate entity for this purpose. Furthermore, Gazprom Neft has entered into a dynamic phase of refinery modernization, with the Omsk refinery in particular streaming the largest isomerization unit in Europe in 2010.”

Dyukov added that the recent company achievements will pave a successful way for a company in its business operations and expand opportunities world wide.

“These achievements have allowed Gazprom Neft to continue to move towards achieving the Company's strategic goals. In 2011, management will concentrate on maintaining production at current fields, developing major upstream projects in Russia and abroad, integrating new acquisitions into Gazprom Neft's structure, modernizing refining assets and extending the Company's retail network.”