OAO Gazprom Neft, the oil arm of Russia’s gas export monopoly, said first-quarter profit rose 21 percent on higher crude prices.
Net income climbed to 48.4 billion rubles ($1.56 billion) from 40 billion rubles in the first three months of last year, the St. Petersburg-based crude producer said today in a statement. That beat the average estimate of $1.43 billion in a Bloomberg News survey of nine analysts.
Russia’s Urals export blend rose 14 percent to average $116.98 a barrel in the first quarter, according to data compiled by Bloomberg. Gazprom Neft’s profit gain contrasted with declines at OAO Rosneft, the nation’s largest oil producer, and TNK-BP, both of which lost tax exemptions during the period.
Revenue advanced 20 percent to 278 billion rubles as production gained 5.7 percent to 108.51 million barrels of oil equivalent in the period, according to the statement. That was a 1.9 percent decline from the fourth quarter.
“There is some disappointment as production slid,” Pavel Sorokin, an oil and gas analyst at Alfa Bank, said by telephone from Moscow. “They are exerting a lot of effort to reverse this and production should stabilize later this year.”
Gazprom Neft switched to reporting to International Financial Reporting Standards in rubles this quarter from U.S. Generally Accepted Accounting Principles.
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