GAZPROM DROPS 23%
OAO Gazprom said profit for the first half of the year fell by almost one-quarter as Ukraine's Naftogaz didn't pay for gas supplied by the Russian state-controlled gas group.
Russia and Ukraine are locked in a dispute over prices and payments, with Gazprom saying it is owed some $5 billion for gas already supplied.
Gazprom, which reports quarterly results later than other listed companies and didn't give separate figures for the second quarter of the year, said profit slipped 23% to 450.6 billion rubles ($11.1 billion).
The company said it had accrued provisions of 215.8 billion rubles owing to "doubtful trade accounts receivable"--a reference to a late or no payment for gas deliveries--from Naftogaz, Ukraine's national gas company.
Still, Gazprom's revenue rose by 7% to 1.59 trillion rubles, as foreign volumes and prices rose. Volumes sold to its most-lucrative European market grew slightly to 86.0 billion cubic meters (bcm)
Gazprom sold only 125.4 bcm in Russia, down from 133.6 bcm last year, although revenues grew owing to a higher price.
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BLOOMBERG - While Europe as a whole gets more than a third of its gas from Russia, that share is lower in the U.K., which receives the bulk of its fuel from North Sea fields and Norway. Still, Moscow-based Gazprom PJSC was the second-biggest supplier to major industrial consumers in the U.K. last year, according to Britain’s energy regulator Ofgem.
FT - of the six LNG tankers that have made deliveries into the UK so far in 2018 three have carried cargoes originally from Russia, leading to questions about whether Moscow was gaining a foothold in the UK gas market after starting up the Yamal LNG facility in Siberia late last year.
REUTERS - So far this year, two Yamal cargoes unloaded at British terminals for domestic consumption, accounting for about a third of Britain’s 2018 LNG imports after typical supplier Qatar pre-sold the bulk of its winter output to Asia last year.
REUTERS - U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $60.77 a barrel at 0753 GMT, up 6 cents, or 0.1 percent, from their previous settlement. Brent crude futures LCOc1 were at $64.62 per barrel, down just 2 cents from their last close.