Gazprom Neft's 9M2021 revenue exceeded RUB 2.1 trillion 
Gazprom Neft's net profit for nine months of 2021 amounted to 357 billion rubles, and thus increased tenfold. During this period, the adjusted EBITDA of the company amounted to 700.6 billion rubles and showed an increase of more than two times compared to the corresponding period of 2020. At the same time, the ratio of net debt to EBITDA at the end of the third quarter of 2021 was 0.32x, which was the lowest debt burden in the last 12 years. This follows from the published consolidated financial statements of Gazprom Neft, prepared in accordance with International Financial Reporting Standards (IFRS) for nine months and the third quarter of 2021.
Gazprom Neft's revenue for the nine months of 2021 increased by almost 50 percent to 2.1 trillion rubles. Adjusted EBITDA (earnings before interest, income tax and amortization) almost doubled, to RUB 700.6 billion, due to an increase in hydrocarbon production and oil refining, as well as positive dynamics of prices for oil and oil products.
A twofold increase in operating cash flow, as well as the phased implementation of the company's investment program contributed to the formation of free cash flow in the amount of 384.4 billion rubles for the reporting period.
“In the third quarter, Gazprom Neft was actively increasing its hydrocarbon production. At the end of the year, the company will for the first time overcome the production level of 100 million tons of oil equivalent. That said, we see opportunities for further growth next year. Thanks to the recovery in oil demand, as well as due to the company's efficient and quick reaction to changes in market conditions, our key financial indicators are showing strong dynamics. Among other things, Gazprom Neft reduced its debt burden to its lowest level in 12 years: the ratio of net debt to EBITDA was 0.32x, “said Alexander Dyukov, Chairman of the Board of Gazprom Neft.
In the first nine months of 2021, hydrocarbon production, including the share in joint ventures of Gazprom Neft, amounted to 74.1 million tonnes of oil equivalent, showing an increase of 2.7 percent. This growth was made possible by an increase in production at new projects, the commissioning of the Tazovskoye field in June 2021, as well as the commissioning of a comprehensive gas treatment unit at the Vostochno-Messoyakhskoye field in July 2020.
The volume of refining at Gazprom Neft's own refineries (refineries) and oil refining assets of joint ventures in the reporting period showed an increase of 7.5 percent to 32.4 million tons. Growth was ensured by the recovery in demand due to the gradual lifting of restrictions associated with the COVID-19 pandemic, as well as the commissioning of the EURO + complex at the Moscow refinery.
Gazprom Neft was able to increase by 12.2 percent, the volume of sales of petroleum products through premium sales channels – up to 19.2 million tons. Automotive fuel sales were up 11.3 percent, boosted by rising demand due to the gradual lifting of restrictions imposed by the COVID-19 pandemic.
The average daily sales through one Gazpromneft filling station in Russia in the third quarter of 2021 amounted to 19.5 tons per day, which exceeded the level of 2020 and 2019. Aviation fuel sales volumes by Gazprom Neft also showed significant growth – by 30.5 percent compared to the same period in 2020. Lubricant sales volumes increased by 8.7 percent. Sales of premium bitumen products increased by 40 percent.
According to the head of Gazprom Neft, the company maintains the practice of paying interim dividends. For the nine months of 2021, the Gazprom Neft Board of Directors decided to recommend the payment of dividends at the rate of RUB 40 per ordinary share, which will be a record figure. The company continues to develop projects aimed at reducing its carbon footprint, said Dyukov. In the third quarter, Gazprom Neft entered into agreements with the largest Russian transport companies – Sovcomflot and Aeroflot – on cooperation in the production of environmentally friendly fuels.
The Gazprom Neft Board of Directors will soon consider a new development strategy for the company until 2035, which will set the company's goals for sustainable development, Alexander Dyukov said. According to him, the company has already announced one of its key goals, namely, to reduce the carbon intensity of Gazprom Neft's activities by 30 percent by 2030.
Gazprom Neft will continue to pay close attention to decarbonization and protection the environment by introducing unique technological projects. The company has put into commercial operation a modular unit for separating associated petroleum gas (APG) into useful fractions. The commissioning of the equipment should reduce the carbon footprint by increasing the efficiency of APG preparation.
In addition, Gazprom Neft will develop projects in the field of CO2 capture and storage and hydrogen energy, including through partnerships with companies from various industries. Also, together with Aeroflot, the company will start developing aviation biofuels with a minimum carbon footprint.