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Gazprom Neft, Russia’s fourth largest oil producer, reported net profit of 200bn roubles ($3.49bn) in 2016, up 82.5 per cent on 2016, on increased production and lower local costs.

EBITDA in the fourth quarter of the year rose 8.2 per cent to 131bn roubles, beating forecasts by VTB Capital of $1.6bn, on higher than expected production.

The company, owned by gas producer Gazprom, said production last year rose 8.2 per cent to 86.2m tonnes of oil equivalent, in a year that ended with promises from Russia to join an OPEC-led cut to global oil production.

The oil producer, refiner and petroleum product retailer attributed the growth in profit to a record level to the full-scale development of major Arctic fields, where production increased by as much as 2.5 times over 2015.

Russian corporates have benefitted from a cheaper local currency in 2016 which has pushed down costs and increased the value of export sales.

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