Thursday, April 24, 2014

Drew EGC Report

Gazprom Profits Up Despite Softening Market

Gazprom headquarters, Moscow (Source: Gazprom)
Gazprom headquarters, Moscow (Source: Gazprom)

Russia's gas monopoly Gazprom has announced healthy profits for the last financial period, despite declining market conditions.

Profit increased to $10.1 billion (€7.5bn) in the third quarter from Q2 2012.

 The Financial Times commented that the rise was largely owing to the rouble weakening against the euro and the dollar.

Earlier this week the Russian authorities announced an audit of the state gas extractor and supplier, its first in five years.

In its accounts statement for the nine months to the end of last September, Gazprom noted net sales of gas to Europe and other countries increased by RUB 42,364 million, or 4%, to RUB 1,068,815 million compared to the nine months ended September 30, 2011.

But sales to neighbouring countries, former members of the Soviet Union (FSU), decreased by 16% in the period, while domestic income rose by just 1%. The company said that sales of gas decreased in volume by 6% within Russia, but an increase in prices offset the returns of the shortfall.

See earlier story: Fitch Gloomy on Gazprom

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