Gazprom sees profit slip

MOSCOW, August 10, 2016 – Gazprom on Wednesday announced its quarterly results over the first quarter of 2016, reporting a 5% year-on-year drop in net income.

The Russian major’s first quarter profit came out at some USD 5.6 billion, down from USD 5.9 billion in the first quarter of 2015. Revenue over the first three months of this year was up 5%, reaching USD 26.8 billion. While the volume of gas exports to Europe, Gazprom’s biggest market, was 48.6% bigger at 58.1 bcm (2.05 tcf) in the first quarter of 2016, net sales only increased by USD 1.85 billion, equal to 22%, over the same period last year.

A weaker ruble, contracts that link gas export prices to the price of oil and higher expenses all weighed the company down. Gazprom reported a 24% increase in operating expenses for the period ending March 31, totalling USD 22.4 billion.

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