Gazpromneft results impress

摘要

The RTS index fell by 1.2pc this week, closing at 1,428 points, despite a rise in crude prices. Gazpromneft's latest financial results, published this week, were rather stronger than those of its peers. Despite the impact of export duty lag in the second quarter, revenue hit $12.2bn in April-June, up by 7pc on the first quarter. Earnings before inter- est, taxes, depreciation and amortisa- tion (Ebitda) hit $2bn, down by just 2pc on January-March, although prof- its slumped by 39pc over the same period to $1bn, largely thanks to a $156mn foreign exchange loss. Bank Renaissance Capital (RenCap) was impressed by the firm's cost control and focus on efficiency, while Otkritie Capital notes that Gazpromneft contin- ues to generate positive free cash flow - Rbs21.5bn ($695mn) for April-June - which significantly exceeded its Rbs2.2bn estimate, as a result of lower-than-expected working capital requirements. But the bank warns that this is not likely to be repeated in the third quarter.