Gazprom's new Bovanenkovo gasfield on the Yamal Peninsula. Earnings have surged for firm. Bloomberg
Gazprom's new Bovanenkovo gasfield on the Yamal Peninsula. Earnings have surged for firm. Bloomberg

Russian gas major Gazprom's profits soar five fold



Russian gas giant Gazprom reported a surge in second-quarter net profit, beating analysts' expectations, as it benefited from rising energy prices.

It said second-quarter net profit jumped to 259 billion roubles (Dh13.95bn), from 48bn roubles in the year-earlier period and above a forecast of 228bn roubles in a Reuters survey of analysts.

Gazprom's shares were up 1.1 per cent after the results, outperforming the broader Moscow stock market, which was 0.8 per cent higher.

Gazprom shipped more than 101 billion cubic metres of natural gas to the EU and Turkey in the first half of the year, up 6 per cent year-on-year and accounting for around a 34 per cent share of Europe's gas market.

Russian oil producer Gazprom Neft said on Thursday it had almost doubled year-on-year net profit in the second quarter to 96.8 billion roubles (Dh5.5bn) on higher oil prices and rising production from new projects.

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Read more:

Gazprom Neft's second-quarter profit almost doubles

Russia a growing force in region but careful approach needed

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The results come after US President Donald Trump's national security advisor on a visit to Kiev Friday condemned the proposed Nord Stream 2 gas pipeline between Russia and Germany which will bypassing Ukraine, stressing Europe was taking a strategic risk by relying on Russian gas.

"It's not just the economic significance of being heavily dependent on Russia for the supply of natural gas and petroleum, but the strategic significance of it as well," John Bolton told journalists after meeting Ukrainian President Petro Poroshenko during a visit to Kiev.

On Wednesday Gazprom said its average gas export price rose by a quarter to 13,858 roubles per 1,000 cubic metres in the first half of this year.

Total sales in April-June increased to 1.83 trillion roubles, from 1.39tn roubles in the second quarter of 2017.

Company%20profile
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Green ambitions
  • Trees: 1,500 to be planted, replacing 300 felled ones, with veteran oaks protected
  • Lake: Brown's centrepiece to be cleaned of silt that makes it as shallow as 2.5cm
  • Biodiversity: Bat cave to be added and habitats designed for kingfishers and little grebes
  • Flood risk: Longer grass, deeper lake, restored ponds and absorbent paths all meant to siphon off water 

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