ENERGY FOR PEOPLE - JSC Gazprom Neft

PERFORMANCE ANDFINANCIAL INDICATORSEnergy for lifeENERGY FOR PEOPLERealized Average Sales PricesThe following table analyses the Company’s average realized export and domestic prices for the periods indicated:Change, %2009 2008 2007 2009–2008 2008–2007Crude oil (US$ per barrel)Export 59,05 94,97 67,73 (38,3) 40,2CIS 40,91 58,26 47,76 (29,8) 22,0Domestic 28,89 45,00 41,54 (35,8) 8,3Crude oil (US$ per tonne)Export 432,63 696,26 496,56 (38,3) 40,2CIS 300,00 427,27 349,60 (29,8) 22,2Domestic 208,00 330,00 303,75 (37,0) 8,6Petroleum products (US$ per tonne)Export 540,83 749,17 561,67 (27,8) 33,4CIS 469,57 686,32 447,37 (31,6) 53,4Domestic 411,53 650,06 454,70 (36,7) 43,0In 2009 the Company’s revenuesdecreased by 28.7% to US$ 24,166million compared to US$ 33,870 millionin 2008. The decrease in revenues wasprimarily due to a significant decrease inmarket prices.During 2008 the Company’s revenuesincreased by 48.8% to US$ 33,870million compared to US$ 22,768 millionin 2007.The changes in revenues were primarilydue to the following:AAan increase in crude oil andpetroleum products production;AAan increase in sales volumes of crudeoil and petroleum products.AAan increase in average pricesCrude Oil Export SalesIn 2009 crude oil export revenuesdecreased by 40.5% to US$ 6,749million compared to US$ 11,349 millionin 2008. The decrease was driven bya significant decline in sales prices(-38.3%) as well as a reduction in therelative volumes of crude oil (-3.7%).The decline in sales prices was due todecrease in Urals prices (-35.4%).In 2008 our revenues from exportcrude oil sales increased by 51.4% toUS$ 11,349 million compared to US$7,498 million in 2007. This growth wasprimarily due to an increase in salesprices by 40.2% and a 7.9% increase insales volumes. The price increase wasattributable to the growth in Urals priceby 36.9%. The growth in volumes wasprimarily due to the acquisition of our50% interest in Tomskneft in December2007.Crude Oil Sales to CISIn 2009 the Company’s revenues fromCIS crude oil sales decreased by 29.8%to US$ 990 million compared to US$1,410 million in 2008. The decreasewas due to reduction in sales prices by29.8%. The decline in sales prices wasdue to decrease in world prices.In 2008 the Company’s revenues fromCIS crude oil sales increased by 61.3%to US$ 1,410 million compared to US$874 million in 2007. This growth wasprimarily due to an increase in salesprices by 22.0% and a 32.2% increasein sales volumes. The price increasewas driven by the general growth inworld prices. Increase in sales volumeswas primarily due to the acquisitionof our 50% interest in Tomskneft inDecember 2007.Crude Oil Domestic SalesIn 2009 our revenues from domesticcrude oil sales decreased by 82.5%to US$ 52 million compared to US$297 million in 2008. This was primarilya result of a significant decrease insales prices by 35.8% and a 72.7%decrease in sales volumes. The declinein sales prices was due to decrease inUrals prices (-35.4%).In 2008 our revenues from domesticcrude oil sales decreased by 38.9%to US$ 297 million compared to US$486 million in 2007. The decrease indomestic crude oil sales was causedby an increase in the relative volume ofcrude oil that the Company sent to theexport and CIS markets.Petroleum Products ExportSalesIn 2009 the Company’s revenuesfrom export petroleum product salesdecreased by 12.6% to US$ 7,139million compared to US$ 8,166 millionin 2008. The decrease was primarilya result of a decline in sales prices by27.8%, which was partially offset bya 21.1% increase in sales volumes.The increase in sales volumes wasattributable to the Company’s recentacquisitions of NIS and Sibir. Theprice reduction was attributable to thedecrease in Urals price by 35.4%.In 2008 the Company’s revenuesfrom export petroleum product salesincreased by 27.5% to US$ 8,166million compared to US$ 6,403 millionin 2007. This growth was primarilya result of an increase in sales pricesby 33.4%%, which was partially offsetby a 4.4% decrease in sales volumes.80