The company increased hydrocarbon production in 2019 primarily through its projects in the Arctic, allowing it to maintain revenue and EBITDA year on year and to increase dividend payments. This is in spite of a significant fall in oil prices on the domestic and international markets.
Gazprom Neft ended the 2019 financial year with a good financial and operational performance, price adjustments on the global oil market notwithstanding. Various projects throughout the company’s refining facilities involving the construction of major new complexes moved into their final stages. With the protection of the environment being an overriding and non-negotiable priority for the company, it is vital that our plants comply with the highest environmental standards.Alexander Dyukov Chairman of the Management Board, CEO, Gazprom Neft PJSC
Reserves and production growth
Gazprom Neft actively expanded its resource base throughout 2019, adding 32 new licence blocks in the year. The company also increased its project portfolio significantly, having started developing oil-rim deposits, Achimovsky deposits, and Necomian-Jurassic gas and gas-condensate deposits at Gazprom PJSC fields, using long-term risk-operatorship agreements.
Hydrocarbon production (including joint-venture interests) was up 3.5% year on year in 2019: this growth was driven by higher production at the Novoportovskoye and Vostochno-Messoyakhskoye fields, in the Orenburg Oblast and at new oil-rim projects, as well as the company increasing its interest in Arcticgas.
Advanced oil-refining technologies
The company has continued its refineries development programme directed at increasing both the conversion rate and the output of in-demand petroleum products, as well as improving the environmental performance of its refineries.
Stable financial performance
Adjusted EBITDA remained almost flat year on year in spite of a decline in oil prices on the domestic and international markets.
The company reached a record-high net profit in 2019 thanks to the appreciation of the rouble and the positive impact of net financial income and expenses.
Strong safety performance
Gazprom Neft is committed to increasing APG utilisation levels as it brings new fields into commercial development and increases hydrocarbon production: the company's objective in this regard is to achieve an APG-utilisation level of at least 95% by 2022, even in the face of increasing production.