Gazprom Neft earns RUB 7.2 billion in economic effect from advanced technologies and business process optimization

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AK&M 06 August 2020 14:56

Gazprom Neft earned RUB 7.2 billion in economic effect while increasing operating performance owing to the new technologies and changes in business processes, the company informed following the Board of Directors meeting reviewing the results of the first year of implementing the corporate digital transformation strategy.

In 2019, Gazprom Neft launched more than 150 new digital initiatives and 10 digital transformation programs. In particular, the Digital Oil project has yielded the company an additional inflow of oil at the Vyngapurovskoye field owing to the use of AI to calculate hidden oil formations. According to Gazprom Neft's strategy, by 2025, the digital transformation will optimize the first oil discovered period at fields, reduce the time and cost of exploration by 30%, accelerate the major oil and gas production projects by 40%.

Gazprom Neft PJSC (tax number: 5504036333) and its subsidiaries own 61 licenses for the prospecting and development of oil fields. The proven oil reserves in the company's fields exceed 4.5 billion barrels. The company's largest shareholder is Gazprom Group.

IFRS net profit attributable to the shareholders of Gazprom Neft PJSC for 2019 increased by 6.2% YoY to reach RUB 400.201 billion versus RUB 376.667 billion a year earlier. Revenue was RUB 2.485 trillion decreasing by 0.2% YoY from RUB 2.489 trillion). Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) stayed flat YoY at RUB 795.1 billion, despite negative price dynamics and adverse market trends.

IFRS loss of PJSC Gazprom Neft for Q1 2020 attributable to the company's shareholders amounted to RUB 13.806 billion against a profit of RUB 107.894 billion a year earlier. Revenue decreased by 12.2% to RUB 514.568 billion from RUB 586.359 billion, EBITDA by 54.6% to RUB 81.376 billion from RUB 179.052 billion.