SALES OF PETROLEUM PRODUCTS

During 2013 the Company was focused on expanding the scale of its petroleum product sales business and building a strong sales brand. The nex priority in this segment is to achieve organic growth through improved operational efficiency. Gazprom Neft plans to be among the Russian and CIS leaders in Russia and CIS in terms of retail sales volumes and the efficiency of its filling station chain by 2025.

Gazprom Neft has one of the best developed retail networks in Russia and further strengthened its market position in 2013, becoming the most significant supplier of light petroleum products in regions where it operates (market share of 21%). The Company sells petroleum products in Russia and CIS countries mainly through its 15 subsidiaries (15 petroleum product suppliers). These subsidiaries and affiliates specialise in large- and small-scale wholesale through tank farms, and retail marketing through a chain of filling stations.

The company had 60 owned and rented product depots in operation as at late-September 2013, with distribution sales through storage depots in 2013 amounting to 7.6 million tonnes of petroleum products. Turnover rates at storage facilities stood at 14.1 units per year. Wholesale volumes of petroleum products totalled 0.9 million tonnes.

Petroleum product sales on the Russian domestic market through filling stations and tank farms in 2013 increased by 2% year-on-year to 14.5 million tonnes.

DOMESTIC SALES OF PETROLEUM PRODUCTS

Source: Company data