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Gazprom 3Q14 results

Published by , Senior Editor
World Pipelines,

Gazprom announces its 3Q14 results.

Gazprom is one of the world’s largest vertically integrated global energy companies, in terms of reserves, production and market capitalisation. It has the unique combination of an enormous reserves base that limits the need to expend capital on exploration compared to its international peer group; an integrated transportation system and finally the ability to service multiple continental gas markets – Europe and Asia – by both pipeline and LNG exports.

Operational highlights

  • Core European export revenues stable over 9 month period, all be it with lower volumes on a QonQ basis.
  • Significant increase in revenues from refined products, heat and electricity.

Financial highlights

  • 6% increase in total sales demonstrates value to investors of diversifying income drivers.
  • Profit for the period attributable to owners of OAO Gazprom decreased 35% to RUB 556 254 million in the nine month period (primarily due to effects of rouble devaluation; net debt increased by 14% to RUB 1 265 127 million due to rouble devaluation).
  • Operating profit decrease significantly lower - 16% reduction to RUB 998 601 million demonstrates fundamental strength of core business in challenging environment.
  • Ukraine remains a financial drain: provision for doubtful trade accounts receivable of NAK Naftogaz Ukraine: RUB 83 927.

    • Outlook

    Against the backdrop of challenging market conditions of lower oil prices and a devalued rouble, these results demonstrate the need for Gazprom’s ongoing diversification of income streams through expansion of core gas exports into new markets – primarily APAC and Turkish – and continuing its growth in LNG, crude oil, refined products, power etc. Diversified growth will be based on the strong foundation of its long term core export sales to long term European clients.


    Adapted from press release by Elizabeth Corner

    Read the article online at: https://www.worldpipelines.com/business-news/29012015/gazprom-3q14-results/

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