Gazprom Sees Red On Ruble
January 15 2016 - 5:10AM
Dow Jones News
MOSCOW—Russian state gas giant PAO Gazprom swung to a small net
loss in the third quarter of last year on a foreign-exchange loss
from the weakening of the ruble.
Gazprom said on Friday that it had a net loss of 2 billion
rubles ($26 million) in the three months to end-September compared
with the same period the previous year, with the foreign-exchange
loss of 400 billion rubles offsetting a 14% rise in revenue to 1.29
trillion rubles.
The Russian state-controlled gas group benefited from a higher
ruble price for gas sales to Europe, Gazprom's most lucrative
market, as the ruble's weakness compensated for the fall in the
dollar price for natural gas. Gas prices are linked to the price
for crude which has tumbled amid slack demand and plentiful supply
on world markets.
Falling oil prices, recently threatening to drop below $30 a
barrel, have weighed heavily on the performance of the Russian
economy and value of the ruble. The dollar rose by nearly 80% in
value against the ruble between the end of September last year and
a year earlier, and has appreciated further since.
Gazprom said sales volumes to Europe were up 2% for the first
nine months of last year to 125.3 billion cubic meters, driving
revenues for the period 17% higher because of the higher ruble
price.
Sales volumes in Russia, however, were down 5% to 150.6 BCM, as
Gazprom faced increasing competition from other domestic
producers.
Gas volumes sold to former-Soviet countries fell by 26%, as
Ukraine, where Russia has been accused of supporting separatist
rebels, preferred to source gas from Europe.
Write to James Marson at james.marson@wsj.com
(END) Dow Jones Newswires
January 15, 2016 04:55 ET (09:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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