Gazprom Neft Profit Rises as Output Growth Beats Competitors

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OAO Gazprom Neft, the oil unit of Russia’s state-run natural-gas exporter, said higher production in the second quarter pushed up profit by 47 percent.

Net income rose to 73.2 billion rubles ($1.1 billion) from 49.8 billion rubles a year earlier, the St. Petersburg-based company said Thursday in an e-mailed statement. Sales fell 1.4 percent to 423.2 billion rubles.

Output is growing faster than at Russia’s other top oil producers as Gazprom Neft ramps up projects in Siberia, Arctic waters and Iraq. It’s among local companies shrugging off the global crude-price slump as tax rates adjust to the weaker market while ruble depreciation has cut the cost of services.

Output jumped 21 percent to average 1.56 million barrels a day in the first half, Gazprom Neft said. Oil and condensate volumes rose 7.2 percent while gas production soared 67 percent. It aims to pump about 2 million barrels of oil and gas a day by the end of the decade.

The company recommended an interim dividend of 5.92 rubles a share, up from 4.62 rubles a year earlier. The board proposed a dividend record date of Oct. 16.