Rising prices fuel record profit at Russia's Gazprom Neft

2 minute read

A 3D printed natural gas pipeline is placed in front of displayed Gazprom logo in this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration

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MOSCOW, Feb 17 (Reuters) - (This February 17 story corrected CEO quote to show production doubled within 10 years, not two years, after company adjusted its statement)

Russia's Gazprom Neft (SIBN.MM), the oil arm of state gas producer Gazprom , said on Thursday its net profit soared four-fold in 2021 to a record 503.4 billion roubles ($6.7 billion) thanks to rising oil and gas prices.

Global energy producers have reported a big increase in earnings for last year thanks to a recovery in demand from pandemic-related lockdowns, mainly in 2020.

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Revenue last year rose 54% to 3.07 trillion roubles, while Gazprom Neft said it generated a free cash flow of over 500 billion roubles.

The company, Russia's fastest-growing in terms of output, also said its hydrocarbon production exceeded 100 million tonnes of oil equivalent (mtoe).

"In 2021, the company reached the 100 mtoe milestone for the first time in its history, having doubled production within ten years," Gazprom Neft's head Alexander Dyukov said in a statement.

"This was one of the key targets we had set ourselves as part of the company’s long-term strategy. We also see opportunities for further production growth in 2022 and beyond."

The company has said it expects hydrocarbon production to increase by 5% annually from 2023 to 2024, after an expected rise of 10% in 2022.

($1 = 75.6300 roubles)

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Reporting by Vladimir Soldatkin, Maria Kiselyova and Gleb Stolyarov Editing by Toby Chopra, Mark Potter and David Goodman

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