Exec: Gazprom expects record net profit in 5 yrs in 2018

MOSCOW, Dec 24 (PRIME) -- Russian gas giant Gazprom expects to post a five-year record net profit in 2018, when its ruble-denominated earnings before interest, taxes, depreciation and amortization (EBITDA) will grow over 60%, Deputy CEO Andrei Kruglov said, as cited in the corporate magazine released on Monday.

“We overcame some difficulties and coped with many challenges in 2018,” Kruglov said, adding that the oil market situation, a higher mineral extraction tax (MET), flat gas traffic tariffs and regulation of oil refining were the negative factors for the company.

Gazprom’s free cash flow is to exceed U.S. $5 billion in 2018, Kruglov said. “Several measures to raise efficiency capital expenditures management, their optimization allow us to expect a positive free cash flow of more than $5 billion in 2018.”

Gazprom plans its investment program in 2019 at 1.326 trillion rubles, in 2020 at 1.065 trillion rubles, in 2021 at 1.251 trillion rubles. “Lower investment is forecasted in the next decade, as compared with a peak in 2018–2019. But the investment burden is not to fall by two or more times. ”

The company plans to reduce the borrowing program in 2019 as compared with 2018, the official said.

Kruglov said that Gazprom is not considering rejecting the use of U.S. dollars, euros and British pounds in trade deals.

(68.0085 rubles – U.S. $1)

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