Gazprom 1H Profit up 63%

Russian gas giant Gazprom reported a first-half profit of rubles 663.55bn ($9.7bn), up by 63% on the same period last year. Operating profit was up more sharply, from rubles 484.4bn to rubles 879.3bn.

Net sales of gas rose by 28%, to rubles 2.125 trillion, which was mainly due to higher prices including excise tax and customs duties beyond the former Soviet Union, and higher volumes everywhere, it said August 29.

Net sales of gas to Europe and other countries rose 34% to rubles 1.4 trillion thanks to prices that were up by a quarter, including excise tax and customs duties; and an 8% rise in the volume, or an extra 9.4bn m³.

Net sales of gas to Former Soviet Union countries rose 10% to rubles 167bn for the six months ended June 30, 2018 compared to the same period of the prior year. Gazprom sold 12% more gas, which was partly offset by 2% lower ruble prices (including customs duties).

Net sales of gas in the Russian Federation increased 9%, to rubles 508.8bn compared to the same period of the prior year. Again, it sold 4% more gas and at a price that was up by 4%. Although the volume was high the price remains low: between a third and a quarter of what it sells at in export markets, including customs and excise.

There were also some negative changes: operating expenses rose as Gazprom spent 32% more on purchasing larger amounts of oil and gas from external suppliers at higher prices. And the mineral extraction tax rose by 21% compared with the year before.