PJSC Gazprom has recently issued its unaudited consolidated interim condensed financial information. It has been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) for the nine months ending on 30 September 2016.
Total sales (net of excise tax, VAT and customs duties) increased by 3% (RUB 115 147 million) to RUB 4 321 364 million for the period, compared to the same period in 2015. Its increase in sales was primarily driven by increased sales of gas to Europe and other countries.
Net sales of gas increased by RUB 52 299 million (or 2%) to RUB 2 325 419 million for the nine months ended 30 September 2016, compared to the same period of the year prior.
Net sales of gas to Europe and other countries increased by RUB 116 061 million (or 8%) to RUB 1 546 533 million for the period compared to the same period in 2015. This was primarily driven by a 28% increase in volumes of gas sold (35.6 billion m3), which was partially compensated by the 20% decrease in average Russian Ruble prices.
Net sales of gas to Former Soviet Union countries decreased by RUB 77 556 million (or 27%) to RUB 214 446 million for the nine month period, compared to the same period in 2015. The change was due to lower volumes of gas being sold (a decrease of 19%, or 5.2 billion m3) and the decrease in average Russian Ruble prices by 11%.
Net sales of gas in the Russian Federation decreased by RUB 7 889 million (or 1 %) to RUB 530 683 million for the nine months ending on 30 September 2016, compared to the same period of 2015. This can be primarily explained by the 7% decrease in volumes of gas sold (10.9 billion m3), which was partially compensated by the increase in average prices by 6%.
Operating expenses increased by RUB 652 919 million (or 21%) to RUB 3 824 703 million for the nine month period, compared to the same period in 2015.
The increase in operating expenses is explained by an increase in a number of items, including:
- Purchased gas and oil – an increase by RUB 290 280 million due to an increase in expenses for gas as a result of the change in scope of consolidation related to the completion of the Swap Agreement between PJSC Gazprom and Wintershall Holding GmbH on 30 September 2015.
- Transit of gas, oil and refined products – an increase by RUB 72 615 million, or 19%. Profit attributable to the owners of PJSC Gazprom for the nine months ending on 30 September 2016 totalled RUB 709 321 million, which is RUB 35 417 million (or 5%) more than for the same period of the prior year.
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 and balances of cash and cash equivalents restricted as to withdrawal under the terms of certain borrowings and other contractual obligations) increased by RUB 97 371 million (5%) from RUB 2 083 120 million as of 31 December 2015, to RUB 2 180 491 million as of 30 September 2016.
This increase resulted from a decrease in cash and cash equivalents as of 30 September 2016, which was partially compensated by a decrease in borrowings denominated in Ruble terms due to the depreciation of US dollar and Euro.
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