Gazprom posts 1H 2009 Net Profit of 305.8 billion Roubles

Gazprom, the world largest gas company, has posted a 1H 2009 Net Profit of 305.8 billion Roubles under IFRS.

The bottom line is down from the Net Profit of 609.3 billion Roubles a year ago, with 1H operating falling from 716 billion Roubles in 2008 to 431 billion Roubles this year, as 1H Sales fell from 1.755 trillion Roubles in 1H 2008 to 1.639 trillion Roubles this year.

The company largely attributed the decline in net result to a 67% increase in the cost of purchases, largely from Central Asian nations, with a rise in net debts reflecting both increased longer term borrowings and currency volatility.

The 2Q component of the posting showed a Net Profit of 195.5 billion roubles, down from 2Q 2008 Net Profit of 323.3 billion Roubles, as 2Q Operating profit fell from 250 billion to 149 Billion Roubles, while 2Q Sales fell from 843.3 billion in 2008 to 708.2 billion Roubles this year.

Gazprom noted a 6% increase in sales to Europe being matched by a 1% fall in sales to the former Soviet Union and 6% fall domestically, as operating expenses increased 16%.