Russia’s Gazprom Neft sees profit rise 47% as gas production soars

By STEPHEN BIERMAN
Bloomberg

OAO Gazprom Neft, the oil unit of Russia’s state-run natural-gas exporter, said higher production in the second quarter pushed up profit by 47%.

Net income rose to 73.2 billion rubles ($1.1 billion) from 49.8 billion rubles a year earlier, the St. Petersburg-based company said Thursday in an e-mailed statement. Sales fell 1.4% to 423.2 billion rubles.

Output is growing faster than at Russia’s other top oil producers as Gazprom Neft ramps up projects in Siberia, Arctic waters and Iraq.

It’s among local companies shrugging off the global crude-price slump as tax rates adjust to the weaker market while ruble depreciation has cut the cost of services.

Output jumped 21% to average 1.56 million bpd in the first half, Gazprom Neft said. Oil and condensate volumes rose 7.2%, while gas production soared 67%. It aims to pump about 2 million bpd of oil and gas by the end of the decade.

The company recommended an interim dividend of 5.92 rubles/share, up from 4.62 rubles a year earlier. The board proposed a dividend record date of Oct. 16.

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