Gazprom doubles profits in third quarter

 30 Nov 2017 - 11:42

Gazprom doubles profits in third quarter
The logo of Russian gas giant Gazprom is seen on a board at the St. Petersburg International Economic Forum 2017 (SPIEF 2017) in St. Petersburg, Russia, June 1, 2017. Picture taken June 1, 2017. REUTERS/Sergei Karpukhin.

AFP

Moscow: Russian gas giant Gazprom saw its net profit double in the third quarter as its lucrative exports to Europe hit new records.

The state-controlled firm registered a net profit in July through September of 200 billion rubles (2.8 billion euros, $3.3 billion at current exchange rates), twice the amount it earned in the same period last year, according to an earnings statement released late on Wednesday.

Its operating profit shot 36 percent higher to 211 billion rubles, while sales climbed 14 percent to 1.43 trillion rubles.

The improved performance of the former Soviet gas monopoly comes as exports to Europe, from which it earns a large part of its profit, hit a new record.

While the firm has lost market share at home and Ukraine is no longer a client, the volume of Gazprom's exports to Europe hit an unprecedented 179 cubic metres last year. 

Gazprom's chief executive Alexei Miller said Tuesday that record would be beaten this year and that production of gas by the group, which has slid to historical lows in recent years, would increase by 13 percent in 2017 to 470 million cubic metres.

Despite tensions with the European Union, which would like to reduce its dependence on Russian gas, Gazprom has seen its market share in Europe increase in recent years to around a third of the total.