Support The Moscow Times!

Gazprom Beats Estimates with $6Bln Q2 Net

Gazprom, the world's top gas producer, posted a second-quarter net profit of 202 billion rubles ($6 billion), beating expectations with a 30 percent year-on-year gain thanks to an increase in sales, it said Thursday.

The state-controlled gas export monopoly also did not report any rebates paid to European clients as part of revisions to its long-term gas contracts. Such reimbursements acted as a drag on results in the year-earlier period.

A poll of analysts expected Gazprom to post 197.6 billion rubles in second quarter net profit.

Gazprom's Moscow-traded shares rose more than 1 percent in early trade, in line with the broader market.

The company, which covers a quarter of gas needs in Europe, has benefited from a slump in exports from Norway and troubled North Africa, its key rivals in the European export market.

Gazprom said its six-month gas sales to Europe rose 13 percent to 824 billion rubles thanks to a 10 percent increase in volumes. The average price in Europe in January-June period edged up 1 percent to $385 per 1,000 cubic meters.

The company aims to restore its sales to Europe, where it generates more than a half of its revenues, to at least 152 billion cubic meters (bcm) this year after they fell 7 percent to 139 bcm last year.

Second-quarter revenues rose 9 percent year on year to 1.1 trillion rubles.

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.