OREANDA-NEWS. Gazprom Neft’s net profit of US GAAP 1H 2007 rose up 3.9% versus 1H 2006, forming a total of 1.862 bn USD. Along with a growth of profit, sales of company showed negative dynamics, dropping 8.7% and making up 9.243 bn USD, which happened due to a fall of oil and petroleum products price around the world and change of sales structure. EBITDA of 1H rose by 3.3% amounting to 2.710 bn USD. Net cash flow of operating activities by Gazprom Neft came to 2.301 bn USD, adding 94% to its previous value.

Extraction volume rose by 1.4% and reached 16.35 mln USD (excluding 50% share of extraction by Slavneft). Processing volume rose by 17.2% to 12.9 mln tons. Veles Capital's experts believe that during even a fall of sales, Gazprom Neft is able to increase its profit, by reducing costs of “crude oil, petroleum and other products, purchased” by 35% and “export duties” down by 28%. Reduction of costs at “export duties” is related to the relocation of products sales flows, as during January-July 2007 Gazprom Neft reduced crude oil export abroad by 19% versus 2006 value, making up a total of 8.510 mln tons, export of petroleum products abroad dropped 1.4% to 6.306 mln tons. "We must note several positive moments of company’s operations: stabilization of hydrocarbons extraction and promising trend of growth, plus the growth of oil processing results, which in our opinion should significantly reinforce business effectiveness over the results of 2007 and exceed financial and production results of 2006. In general, we see Gazprom Neft’s results being positive ad think that when oil extraction drop trend is broken and growth begins, then we will be able to announce resurrected effectiveness of the oil company," the experts concluded.