Gazprom Yr-on-Yr Profits Drop 18% in 2017

The profit attributable to the owners of majority state-owned Gazprom for the first nine months of the year was rubles 581.8bn ($9.95bn), down 18% on the same period of the prior year, it said November 29. However the government saw some added revenues from higher taxes. Gazprom said its operating expenses rose 3% to rubles 3.9bn, mainly as a result of a 44% hike in the mineral extraction tax. And Gazprom's third-party gas transport business in Russia grew by 20 %, to rubles 174.5 bn year on year.

It reported an operating profit of rubles 695.6bn, up from rubles 567.8bn last year.

Net sales of gas to Europe (outside the former Soviet Union) and Turkey rose by rubles 782mn, to rubles 1,547.315bn for the nine months ended September 30, thanks mainly to an 8% rise in gas sold, or an extra 12.9bn m³ and foreign exchange rate changes. But that was partly offset by a 6% decrease in average Russian ruble prices (including excise tax and customs duties).

Net sales of gas to former Soviet Union countries fell 6% to rubles 202.166bn as prices in average Russian ruble terms (including customs duties) fell by 13%, again partly offset by a 10% (2.1bn m³) increase in volume.

Net sales of gas in the Russian Federation rose 11%, to rubles 587.98bn as a 12% (17.3bn m³) increase in volumes was partly offset by a 1% drop in the average price.