Gazprom Results Disappointing

Profit at the Russian gas giant, Gazprom, fell 10% in 2012. A 17% drop in sales to countries formerly in the Soviet Union was one of the larger negatives on the balance sheet.

The company said net sales of gas decreased by 6%, although domestic sales increased by 3%, in a statement of accounts on its website.  But net profit fell from  €33.3 billion to €30.07bn ($38.6bn).

Lower gas sales in some markets and one-off payments to consumers dragged down the accounts. Alower volume of gas was sold to European countries, down to 151 billion cubic metres (bcm) from 156.6 bcm in 2011.

Net sales of gas to FSU countries decreased by 107,662 million Russian rubles, or 17%, to 529,516 million (€13.1 bn) in the year ended December 31, 2012 compared to the year ended December 31, 2011. Gazprom said this was "partially compensated by the increase of the average realized prices in RUB terms (including customs duties) by 12%".

The company, the world’s largest producer of natural gas, has been criticised for ignoring falling gas demand in its major export markets and for charging monopolistic prices, says the Financial Times.