Gazprom recorded a 12% increase in gas sales in 2013

OAO Gazprom has issued its audited consolidated financial statements prepared in accordance with International Financial Reporting Standards for the year ended 31 December 2013.

2013 financial highlights

Sales

Net sales of gas increased by RUB 314.7 million, or 12%, to RUB 2.97 billion in the year ended 31 December 2013 as compared with the year ended 31 December 2012.

Net sales of gas to Europe and other countries increased by RUB 213.3 million, or 15%, to RUB 1.68 billion in 2013 as compared with 2012. The increase in net sales of gas was mainly driven by an increase in the volumes of gas sold by 15%, or 23.3 billion m³, which was reinforced by the increase in average prices in RUB terms (including customs duties) by 1%.

Retroactive gas price adjustments were recognised in the financial statements for the year ended 31 December 2013 as an increase in sales in the amount of RUB 74.39 million, reflecting a decrease in previously accrued liability. For the year ended 31 December 2012, the effect of retroactive gas price adjustments, related to gas deliveries in the years 2010 and 2011, was recognised as a decrease in sales in the amount of RUB 102.7 million.

Net sales of gas to FSU countries decreased by RUB 109.1 million, or 21%, to RUB 420.3 million in 2013 as compared with 2012. The change was due to a 10% decrease in average prices in RUB terms (including customs duties) and a 10%, or 6.7 billion m³, decrease in the volumes of gas sold in 2013  compared with 2012.

Net sales of gas in the Russian Federation increased by RUB 33.5 million, or 4%, and amounted to RUB 794.3 million in 2013 as compared with the prior year, mainly due to a 14% increase in the gross average domestic gas prices. This effect was partly offset by 8%, or 22 billion m³, decrease of gas sold in  2013 as compared with the prior year.

Net sales of refined products increased by RUB 142.5 million, or 12%, to RUB 1.35 billion in 2013, primarily due to an increase in volumes sold by Gazprom neft Group to customers in Europe and other countries and in the Russian Federation and also due to an increase in prices. The increase in sales of refined products was partially offset by a decrease in sales of crude oil and gas condensate by RUB 65.3 million, or 24%. The decrease in sales of crude oil was caused by a decrease in volumes of crude oil sold to customers in Europe and other countries. Reallocation of sales between operating segments is related to inclusion of Gazprom neftekhim Salavat Group’s results in the consolidated financial statements in June 2012.

Net sales of electric and heat energy increased by RUB 32.08 million, or 9%, to RUB 375.6 million in 2013 as compared with 2012, mainly due to the inclusion of OAO MIPC in the consolidated financial statements from September 2013.

Net sales of gas transportation services increased by RUB 37.9 million, or 30%, to RUB 163.3 million in 2013 as compared with the prior year, primarily due to an increase in volumes of gas transported for independent suppliers and gas transportation tariffs.

Operating expenses

Operating expenses increased by RUB 179.06 million, or 5%, in  2013 to RUB 3.6 billion as compared with the prior year.

A major item in the total amount of operating expenses is “purchased gas and oil”, which decreased by RUB 66.9 million, or 8%. This decrease in cost of purchased gas mainly relates to the decrease in volumes of gas purchased from third parties in and outside of the Russian Federation. The cost of purchased oil included in the cost of purchased gas and oil decreased by RUB 49.07 million, or 19%, to RUB 215.3 million in 2013 as compared with RUB 264.3 million in 2012.

Profit

In  2013, profit for the year attributable to owners of OAO Gazprom totalled RUB 1.14 billion, which is RUB 85.2 million, or 7%, lower compared to 2012.

Net debt balance (defined as the sum of short-term borrowings, current portion of long-term borrowings, short-term promissory notes payable, long-term borrowings, long-term promissory notes payable, net of cash and cash equivalents, as well as restricted cash and cash equivalents under the terms of certain borrowings and other contractual obligations) increased by RUB 41.6 million, or 4%, from RUB 1.07 billion as 31 December 2012 to RUB 1.11 billion as of 31 December 2013. This increase resulted from obtaining new long-term borrowings, and the depreciation of RUB against USD and EUR that was offset by an increase in cash and cash equivalents.

Adapted from press release by Rosalie Starling

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