Gazprom Beats Q3 Expectations on Growing European Demand

Gazprom, Russia’s biggest company by market capitalization, posted a quarter net profit of 276 billion roubles ($8.13 billion), down 10% year-on-year. At the same time, it reported an 876,331 million roubles net profit ($25.81 billion) for the first nine of 2013, up 3% year-on-year. 

‘Net sales of gas increased by RUB 294,852 million, or 16%, to RUB 2,124,385 million in the nine months ended September 30, 2013 compared to the nine months ended September 30, 2012,’ reads a note released on Thursday. 

Several polls expected Gazprom to post a lower profit for the third quarter. Strenghtening demand in Europe, lower productions of competitors and lower-than-estimated operating expenses are the main reasons for the reassuring results. 

‘For the nine months ended September 30, 2013 net sales of gas to Europe and other countries increased by RUB 155,500 million, or 15%, to RUB 1,224,315 million compared to the nine months ended September 30, 2012,’ writes the company, mentioning a weaker rouble.