Gazprom Reports a 48.6% Profit Increase
Russia’s Gazprom reported a 1.4% increase in sales and a more significant 48.6% increase in profit for the first six months of the year compared to the same period of 2014. On Monday evening, the company also wrote it registered a 7% increase in net sales of gas to RUB 946,620 million for the six months ended June 30, 2015.
‘The overall increase in sales of gas to Europe and other countries was driven by the increase in average Russian Ruble price (including excise tax and customs duties) by 21% compared to the same period of the prior year. The change was mainly driven by the increase in the foreign exchange rates which is partially compensated by the decrease in volumes of gas sold by 7 %, or 5.6 bcm’ the Russian company wrote on Monday.
On the other hand, Gazprom reported a 13% decrease in net sales of gas to Former Soviet Union countries in the same period.
‘The change was due to the decrease in volumes of gas sold by 32 %, or 9.8 bcm, which is partially compensated by the increase in average Russian Ruble price (including customs duties) by 17 %. The change was mainly driven by the increase in foreign exchange rates.’
Gazprom’s net debt balance decreased by RUB 201,042 million, or 12 %, from RUB 1,650,633 million as of December 31, 2014 to RUB 1,449,591 million as of June 30, 2015.
‘This decrease resulted from decrease in long-term borrowings, change in foreign currency exchange rates (primarily, depreciation of Euro against the Russian Ruble) and increase in cash and cash equivalents.’
FUTURE PROJECTS: OMV, CNPC
The company led by Alexey Miller is holding talks with Austria-based OMV and Chinese partners.
Last Friday, Miller met with Rainer Seele, Chairman of the Executive Board of OMV.
‘The parties addressed the issues of the Nord Stream II project implementation, particularly, the preparations for the Shareholders' Agreement on setting up a joint venture for constructing the new gas pipeline’ Gazprom wrote.
Also last week, Miller met with Zhang Gaoli, First Vice Premier of China’s State Council and Wang Yilin, Chairman of the Board of Directors of China National Petroleum Corporation (CNPC).
‘The participants addressed the issues of bilateral cooperation, particularly the preparations for the contract on Russian natural gas supply to China via the western route. The parties highlighted that they aimed for the successful conclusion of negotiations which were progressing steadily’ Gazprom wrote on its website.
Chinese and Russian partners discussed cooperation opportunities in four fields: underground gas storage, power generation, machine-building projects for the oil & gas industry, and cooperation in third countries.
Earlier this year, Miler said that Russia could export up to 100 billion cubic meters of gas through the “Western Route” and the gas could be paid in yuans and roubles.