Russia’s Gazprom Neft reported a 4.4% fall in net incomes to 37.82 billion rubles ($1.08 billion) despite higher production as foreign exchange losses from a re-evaluation of its loan portfolio sank the result.
The Moscow-headquartered oil arm of Gazprom raised its adjusted ebitda by 9.6% compared to the first quarter of 2013 to 84.03 billion roubles as higher output and premium sales boosted cash flows.
Production rose 4.5% in the first quarter compared to the same time last year to reach 116.75 million barrels of oil equivalent.
Gazprom Neft said the rise had stemmed from applying new technology to mature fields, continued production growth at the Orenbrug region and Yuzhno-Priobskoye fields as well as its increased effective stake in gas producer Sever Energia.
The oil producer acquired an additional 9.8% slice of SeverEnergia in April from compatriot Novatek to take its holding to 50%.