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2014-10-14 20:15:00

GAZPROM DROPS 23%

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.

marketwatch.com

Tags: GAZPROM, GAS, RUSSIA, PRICE,

Chronicle:

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