Gazprom Neft expects to maintain positive FCF in 2017
MOSCOW. Aug 10 (Interfax) - Gazprom Neft arrived at a stable positive free cash flow of 27 billion rubles in H1 2017, CFO Alexei Yankevich said during a conference call.
FCF was positive, but not large, in the first quarter. It was stable and positive in the first half and the company plans to maintain that positive level this year, he said.
Capital expenditure declined to 154 billion rubles in H1 2017 from 174 billion rubles in the same period last year, due to a reduction in drilling at brown fields, while capex in downstream increased with the start to the active phase of refinery modernization, which is aimed at raising product yield from crude, he said.
Gazprom Neft previously planned to maintain capex in 2017 at the 2016 level, 362 billion rubles.
