GAZPROM ROSE 13%
Russian state gas giant OAO Gazprom said second-quarter profit rose 13% on higher sales and prices which offset provisions for non-payment by Ukraine's Naftogaz.
Russia and Ukraine are locked in a dispute over prices and payments, with Gazprom saying it is owed some $5 billion for gas it has already supplied Ukraine's national gas company.
Gazprom, which reports quarterly results later than other listed companies, said on Tuesday that profit for the second quarter grew to 227.6 billion rubles ($5.63 billion). Revenue rose 19% to 1.32 trillion rubles.
Profit for the first half of the year slipped 23% to 450.6 billion rubles, the company said.
The company said it had accrued provisions of 215.8 billion rubles in the first six months of the year owing to "doubtful trade accounts receivable"--a reference to a late or no payment for gas deliveries--from Naftogaz.
Still, Gazprom's first-half 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, though revenue grew owing to a higher price.
Gazprom shares were up 0.5% in Moscow mid-morning, lagging the market's broader gains as investors waited for management to say more about the company's capital spending plans and progress on a new gas contract with China. Management is scheduled to brief investment analysts later Tuesday.
Russia agreed a long-awaited supply deal with China earlier this year, but Russian Prime Minister Dmitry Medvedev said on Monday that another supply deal using a second route would be agreed no earlier than 2015, rather than this year.
|November, 17, 19:55:00|
|November, 17, 19:50:00|
|November, 17, 19:45:00|
|November, 17, 19:40:00|
|November, 17, 19:35:00|
|November, 17, 19:30:00|
REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.