Russian gas giant Gazprom said on Thursday its earnings fell 25 percent year-on-year in 2017, partly due to higher debt and costs of a legal dispute with Ukraine.
Net profit for the year totaled 714.3 billion roubles ($11.41 billion), the company said, down from 951.6 billion roubles a year earlier. Total sales in 2017 rose 7% to 6,546 billion rubles, Gazprom said, according to Reuters.
The company also said during the year net gas sales grew in all of its geographic segments.
Overall net sales increased by RUB 37,817 million, or 1 %, to RUB 3,340,587 million years on year.
“The change was due to the growth in volumes of gas sold in all geographic segments and the growth in average U.S. Dollar prices (including excise tax and customs duties) in the Former Soviet Union countries and Europe and Other countries, that was partially offset by the appreciation of the average exchange rate of Russian Ruble against U.S. Dollar and Euro by 13 % and 11 %, respectively, for the year ended December 31, 2017 compared to the year ended December 31, 2016,” the report said.
Also on Thursday, Gazprom’s Deputy CEO Vitaly Markelov said the company expects a 1% increase in natural gas production in 2018.
“Last year, the company produced 471 billion cubic meters of natural gas and 15.9 million tons of gas condensate”, said Vitaly Markelov. “In 2018, the plans are for gas in a volume of 475.8 billion cubic meters of natural gas. There will be a minimum reduction in the production of gas condensate – up to 15.2 million tons”, he added.
Last year, the company opened two new gas fields – in the Ohotsk Sea and the Krasnoyar region, and also other gas fields are being developed. Thus, Gazprom’s Gas Stock estimate already exceeds 4 trillion cubic meters.
