Gazprom H1 Profits up 33% on Finance Income
Gazprom saw net income swell to rubles 836.5bn ($4.55bn) in the first half, up 33% yr/yr, the Russian gas supplier reported on August 29.
Revenues edged up 1.6% to rubles 4.08 trillion, as higher prices more than offset an 5.5% decline in sales volumes to 263.4bn m3.
While hub prices this year have been lower than for some time, Gazprom still sells some gas on oil indexed contracts, typically with a six to nine month lag, and those were hiked by last year's oil price rise. Poland complained about that effect in its seasonal results August 22.
Exports to Europe slumped 8.3% to 117.9bn m3, but these supplies were priced 10.6% higher at rubles 15,331 ($230)/’000 m3. Sales in Russia were down 2.5% in volume terms at 126.4bn m3 but up 4.5% in price at rubles 4,101/’000 m3.
Operating profit slumped 11% to rubles 780.9bn, as a result of increased costs and impairment charges. But pre-tax profits still climbed 34.6% to rubles 1.125 trillion, on the back of higher finance income and lower finance expense.
Gazprom’s European market share was eroded this year by record-high LNG imports, including from its domestic rival Novatek.