OAO Gazprom Neft (SIBN.RS), the oil arm of Russian gas monopoly OAO Gazprom (GAZP.RS), said Monday its third-quarter net profit increased 67% on year, propelled by the favorable price environment and growth in the refining segment.
Net profit for the quarter ending September, under U.S. Generally Accepted Accounting Principles, rose to $1.59 billion from $957 million a year earlier.
Revenue rose 77% to $9.64 billion, while earnings before interest, taxes, depreciation and amortization, or Ebitda, grew 70% to $2.64 billion.
Last week, Gazprom Neft, Russia's fifth biggest oil producer, said it expects crude production this year to reach 30.8 million metric tons, or 619,000 barrels a day, down from an earlier forecast of 32.7 million tons.
Recently, Gazprom Neft said it plans to cut its capital spending program by 20% next year, which analysts say puts the company's ability to revert crude production at doubt.
"Given the recent sharp decline in the oil price, Gazprom Neft's third-quarter results may not be highly indicative of its future performance," said Evgenia Dyshlyuk, an analyst at Moscow-based investment bank Renaissance Capital.
The company said earlier this year it plans to boost output and grow its reserves considerably in the coming years in a bid to become one of the world's largest oil companies.