for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Energy

UPDATE 1-Russia's Gazprom Neft earnings up in third quarter as oil prices rise

* Gazprom Neft’s quarterly earnings at 28 billion roubles

* Third quarter hydrocarbon production broadly unchanged

* Company sees 2021 spending on a par with 2020 (Adds detail)

MOSCOW, Nov 19 (Reuters) - Gazprom Neft, the oil arm of Russian gas company Gazprom, said on Thursday its third-quarter net income rose by 27% from the previous three months to 28 billion roubles ($369 million) as crude prices rose.

It also said the partial lifting of restrictions imposed due to COVID-19 had also improved its results.

The company, like many other energy producers, has suffered from weak oil prices due to overproduction and the fallout from the pandemic. It had to slash its investments by a fifth this year to respond to the crisis.

The company’s earnings were still down by more than 70% year on year, but it fared better than some of its peers, such as Rosneft, which suffered a loss in the third quarter.

Gazprom Neft said it expected the “worst is over” for the oil industry and saw capital expenditures in 2021 roughly on a par with this year’s.

Gazprom Neft, Russia’s fastest growing oil producer in terms of output, also said its hydrocarbon production, including joint ventures, stood at 72.1 million tonnes of oil equivalent in the January to September period, unchanged from the same period a year earlier.

It said its free cash flow reached 50.8 billion roubles in the July to September quarter, while revenue increased by 35% quarter-on-quarter to 536.7 billion roubles.

$1 = 75.8909 roubles Reporting by Vladimir Soldatkin and Olesya Astakhova; Editing by Christian Schmollinger and Edmund Blair

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up