Gazprom Profits Down 23% in 2017

The yearly profit at the Russian gas giant Gazprom tumbled 23% in 2017 to rubles 766.89bn ($12.2bn), despite record sales of gas to its highest-paying market, Europe. Those receipts were slightly offset by rubles 20bn of retrospective price adjustments.

Prices were little changed year on year falling from rubles 11.8mn/'000 m³, to rubles 11.7mn/'000 m³ (or to $4.4/mn Btu) for its international sales (so beyond Russia and the former Soviet Union). The average sales price to the FSU was rubles 9.2mn/'000 m³.

Net sales of gas to Europe and other countries rose 4% to rubles 2.2 trillion ($32bn). The change was driven by the increase in volumes of gas sold by 6%, or 13.7bn m³.

A stronger rouble was one reason it gave for the decrease. The ruble appreciated against the dollar and the euro by 13% and 11%, year on year. Total revenues were up 7% to rubles 6.5 trillion, net of excise tax, VAT and customs duties, most of the increase coming from crude oil and refined products.

Net sales of gas to former Soviet Union countries fell  5%, to rubles 292.8bn, owing to 10% lower average ruble prices that were partly offset by a 5% rise in the volume – 1.8bn m³ more.

Net sales of gas on its home turf rose 7 % to rubles 875.7bn ($14bn), owing to an identical 7% increase in the amount sold: 15bn m³ more.