Economic Performance:
2013 Results

This reporting year was a successful one for Gazprom Neft. The Company improved its performance against almost all operating and financial indicators: production, operating and net profits increased, despite negative market conditions including a fall in oil and petroleum product prices, the increase in MRT and natural monopoly rates, and the increase in excise duties on different fuel types.

Total production by OJSC Gazprom Neft rose by 4.3% in 2013, to 62.26 million tonnes of oil equivalent. The Gazprom Neft Group’s proved hydrocarbon reserves as of 31 December 2013 totalled 1.34 bn TOE, a year-on-year growth of 11.9%.

The volume of oil refining in 2013 totalled 42.63 million tonnes. In 2013, all of the Company’s refineries switched over to the production of Euro 4 and Euro 5 fuels. In the reporting year, the Company became the largest supplier of light petroleum products in its operating regions, with a 21.6% share. The Company’s filling station chain comprises 1,747 filling stations in Russia, the CIS and the Eastern Europe. Sales of petroleum products through Russian filling stations grew by 11%, to 7.3 million tonnes. The average daily sales of petroleum products per filling station in the country reached 19 tonnes per day, and increased by 7.8%.

The growth of hydrocarbon production and the significant increase in sales through premium distribution channels led to a higher adjusted Net profit before interest, tax, depreciation and amortisation.EBITDA (earnings before interest, taxes, depreciation and amortisation), up 4.2% (RUB 336.8bn). Net profit amounted to RUB 177.9bn, a year-on-year increase of 0.9%. At the end of 2013, the Company became one of the industry leaders in terms of operating profit per BOE produced and adjusted operating profit (subject to performance of joint ventures). At year-end 2013, the dividend yield of OJSC Gazprom Neft shareholders also remained the highest among its industry peers. The results achieved confirm the status of the Company as an industry leader.