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Gazprom Neft posts record net profit of 235 billion rubles in 2017

The company’s operating cash flow throughout last year stood at $7.4 billion, which is another record

MOSCOW, February 7. /TASS/. Gazprom Neft has posted its highest-ever net IFRS net profit of 253 billion rubles (over $4.4 billion at the current exchange rate) in 2017, up 26.5% year-on-year, the company said in its preliminary consolidated IFRS financial statements published on Tuesday.

"2017 was a record financial year for Gazprom Neft, with the company achieving the highest net profit in its history. The company’s operating cash flow throughout last year stood at RUB422 billion [$7.4 billion] - another record," Chairman of the Gazprom Neft Management Board Alexander Dyukov said, commenting on the company’s performance in 2017.

Company revenue including duties (sales) for the 12 months ended December 31, 2017, is expected to reach 2 trillion rubles ($35 billion), up more than 18% year-on-year. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) is expected to reach 551 billion rubles ($9.7 billion), up 20.8% year-on-year.

Gazprom Neft expects the free cash flow to increase to 65 billion rubles ($1.1 billion) in 2017.

The company attributes the last year’s growth in key financial metrics in 2017 to "improved market conditions, the successful development of new initiatives in hydrocarbon production and in increasing retail sales, and effective management initiatives."

In its Investors Day presentation, Gazprom said that the company’s net profit increased by 45.3%, to $4.3 billion.