UPDATE 1-Russia Gazprom Neft's 2007 net, sales rise

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MOSCOW, May 15 (Reuters) - Russian oil firm Gazprom Neft (SIBN.MM: Quote, Profile, Research, Stock Buzz), the oil arm of gas export monopoly Gazprom (GAZP.MM: Quote, Profile, Research, Stock Buzz), reported on Thursday a 12 percent increase in its 2007 net profits, slightly exceeding analysts' expectations.

The firm said its net profit under U.S. Generally Accepted Accounting Principles (GAAP) amounted to $4.14 billion last year versus $3.7 billion in 2006 and the average analysts' forecast of $3.92 billion.

Revenues rose by 6 percent to $21.1 billion, in line with analysts' expectations.

Gazprom Neft, Russia's fifth-largest oil producer, said the results were supported by favourable market conditions, increased refining and redistribution of oil and oil products in favor of more effective destinations.

"Our target for 2008 is to consolidate this success and continue stable growth of the business," Gazprom Neft chairman Alexander Dyukov said in a statement.

In the fourth quarter alone, Gazprom Neft's net profit rose by 58.8 percent to $1.32 billion, while revenues increased by 47.2 percent to $6.42 billion. The figures were also slightly higher than $1.1 billion and $6.39 billion expected by analysts.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at $1.67 billion in the fourth quarter and $5.83 billion for the whole year, representing increases of 40 and 13 percent year-on-year respectively.

The firm said its net cash flow from operating activities increased by 59.7 percent to a record of $5.27 billion in 2007. (Reporting by Tanya Mosolova; Editing by Rory Channing)