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Gazprom profits triple in Q2, before crisis hit

Gazprom profits triple in Q2, before crisis hit

Russia's Gazprom said Monday its net profit almost tripled in the second quarter of 2008 as the world's largest gas producer reaped earnings from record commodity prices before the global economic crisis took hold.
But the numbers offer limited comfort with the company's stock down 71 percent this year amid plummeting oil prices.
The state-controlled behemoth's net profit ending June 30 soared to 300 billion rubles ($10.2 billion) from 103 billion rubles in the same period last year, Gazprom said in a statement referring to an unaudited earnings report.
Its bumper earnings came courtesy of oil prices, which dictate prices for other energy products. Oil was on its way to a record high of over $147 a barrel shortly after the quarter ended.
It is expected Gazprom's further 2008 earnings will come nowehere near the first-half bonanza, with year-end oil prices barely a quarter of the July high.
Net income in the first six months of the year rose 83 percent to 573.75 billion rubles.
However, operating expenses, including the cost of oil and gas from Central Asia for resale, rose by 30 percent to 1 trillion rubles ($35 billion), the company said. Additionally, taxes on crude production also increased in that period, it said.
Net debt of the Moscow-based company dropped to 836.9 billion rubles on June 30 from 1.2 trillion rubles at the end of 2007. Total debts shrank from $84.5 billion to $69 billion in the first half of the year.
Gazprom said the debt shrank after the company in June sold part of its share in its subsidiary bank Gazprombank.
Stocks in the world's largest natural gas producer have lost more 71 percent at the MICEX stock exchange since the beginning of the year amid a collapse in Russian shares and plummeting oil prices have shrunk.


Updated : 2021-05-14 02:56 GMT+08:00