Gazprom sees profits jump by 85%
December 30, 2008
Gazprom supplies about one quarter of Europe
Russian gas giant Gazprom has reported a solid rise in profits and sales amid record gas and oil prices in the first half of the year.
For the six months to 30 June, net profit jumped 85% to 609.4bn roubles ($20.8bn, £14.2bn) compared with the same period in 2007.
Sales rose 52% to 1.74 trillion roubles on both higher prices and volumes.
However oil prices have slumped from July highs and most observers expect oil firms to see future profits slide.
Shortages
Gazprom also confirmed it would stop supplying gas to Ukraine on 1 January if no contract is signed.
“The last round of talks with Ukraine is beginning. We are counting hours,” the firm’s chief executive Alexei Miller told state-owned Russian news television channel Vesti.
Gazprom has said Ukraine owed $1.67bn (£1.1bn) for gas and $450m in fines.
Ukraine is a key transit route of Russian gas to Europe, and a supply cut could affect the amount of Russian gas reaching countries further west.
A similar row in 2006 led to gas shortages in several EU countries.
Crunch impact
Gazprom, the world’s largest gas producer, supplies a quarter of the European Union’s gas needs, or 42% of EU’s gas imports.
The firm also said the credit crunch has affected its ability to attract loans.
“At the moment the management can not certainly assess the impact of further decrease in financial markets’ liquidity and the growing instability of foreign exchange and stock markets on the group’s financial state,” the company said in a statement.
Source: bbc.co.uk/
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