Gazprom Neft investment case market capitalisation as at 31 December 2020 of net profit – target dividend payout In accordance with the Gazprom Neft PJSC Dividend Policy Regulation (new version dated 29 December 2020). Net profit is calculated taking into account adjustments for foreign exchange gain (loss), foreign exchange rate differences on operating items, impairment loss on fixed assets and assets under construction, revaluation of financial investments and a number of other indicators. The goal of the Gazprom Neft Strategy to 2030
To strengthen our market position and become a benchmark for global industry peers in terms of efficiency, safety and technological advancement.
Managing the value chain as a single asset An agile investment decision-making framework Highly efficient refining achieved through a refinery modernisation programme Extensive resource base An operational efficiency and HSE system covering all areas of the company’s business Growth in dividend payments Digitising the entire production chain to improve performance Organisational, operational, cultural and digital transformations across the company Target Zero – zero harm to people, the environment, or property in our operations Following the best available environmental practices Investment grade credit ratings The company’s standing in the industry
24.3% adjusted EBITDA margin
Return on average capital employed.
16.97 tonnes per day – average daily retail sales
₽323.2 EBIT per barrel of oil produced
₽4,128.3 lifting cost per barrel of oil produced
96.1 mtoe hydrocarbon production
60.5 mt of oil and oil condensate production
Thanks to our balanced approach to asset management, we have delivered three consecutive quarters of net profit growth, giving us a stable financial position to justify the payment of an interim dividend. Production profile, mtoe
Exploration and production: projects with a relatively high share of gas in our portfolio allowed us to balance our production profile to ensure OPEC+ compliance.
Refining: with the Gazprom Neft refinery modernisation programme in its final stages, the company is well-positioned to be a key beneficiary of refining margin recovery.
Share of adjusted IFRS net profit, %
The new dividend policy sets a target payout ratio of at least 50% of adjusted IFRS net profit.
Operational strengths The investment programme responds flexibly to changes in the market Lifting costs per barrel were optimised despite the macroeconomic headwinds The company retains the potential to increase current production Creating sustainable value for shareholders Driven by our commitment to increased openness and transparency, we joined the UN Global Compact and obtained the highest climate score from the CDP (Carbon Disclosure Project) initiative The company has achieved a 9.7% reduction in Scope 1 and Scope 2 GHG emissions Gazprom Neft is seeking to minimise its environmental footprint, considering alternative energy sources to support own assets, and is performing environmental emergency-response drills in the Arctic Zero fatal accident rate (FAR) has been achieved