Yahoo Finance Record profits for Gazprom Neft as Kremlin cashes in on petrol prices
Russian state-owned oil producer Gazprom Neft has achieved record profits after it ramped up production amid rising prices.
Profits climbed four-fold to 503bn roubles (£4.8bn) last year as its production climbed above 100m tonnes of oil equivalent for the first time.
Oil prices have climbed almost 50pc to about $93 a barrel over the last 12 months as economies rebounded from the pandemic. Analysts have warned that the price of crude could hit $100 if supplies are disrupted due to tensions between Russia and Ukraine.
Gazprom Neft is the oil producing subsidiary of state gas giant Gazprom, which has been accused of adding to the global gas price crisis by restricting supplies to Europe.
The subsidiary plans to pay out an all-time high dividend payment of 40 roubles (39p) per share.
Alexander Dyukov, chief executive, said: “In 2021, the company reached the 100m tonnes of oil equivalent milestone for the first time in its history, having doubled production within ten years.
“We continue to develop new exploration and production projects in response to growing demand for oil and petroleum products.”
The company has said it expects hydrocarbon production to increase by 5pc annually from 2023 to 2024, after an expected rise of 10pc in 2022.
Russia is part of the Opec-plus coalition of oil producers, which is gradually unwinding production curbs introduced at the height of the pandemic when demand collapsed. However, several coalition members have struggled to increase output to match targets, with the International Energy Agency urging the group to close the gap.
Higher oil prices have been felt at UK petrol pumps, with petrol and diesel prices both hitting record highs over the last week.
Petrol climbed to 148.02p per litre on Sunday and diesel climbed to 151.57per litre - surpassing previous records in November last year of 147.72p and 151.10p respectively.
It comes as soaring natural gas prices contribute to a 54pc increase in household energy bills from April, taking average annual bills to £1,971.
Critics have accused Gazprom of withholding supplies from Europe’s spot market to pressure Germany into starting up a new pipeline, Nord Stream 2, which would bypass Ukraine.
Gazprom has denied any market manipulation, saying: “Gazprom delivers gas in accordance with consumer requests in full compliance with current contractual obligations.”
