Gazprom Profit in Q2 Drops 82% amid Oil-Price Plunge

Gazprom PJSC said Friday that pretax profit fell 82% in the second quarter on the back of falling oil prices and energy consumption due to the coronavirus pandemic.

The Russian oil-and-gas company said pretax profit dropped to 25.4 billion Russian rubles ($339.0 million) in the three months to June 30, from RUB137.4 billion a year earlier. The company attributed the collapse to lower prices for oil and oil products on both international and domestic markets over the period, coupled with a drop in demand for energy resources.

Revenue fell to RUB398.3 billion from RUB610.5 billion, Morning Star reports.

Earnings before interest, taxes, depreciation and amortization–one of the company’s preferred metrics, which strips out exceptional and other one-off items–fell to RUB66.6 billion from RUB189.9 billion.

Hydrocarbon production, including shares in joint ventures, declined to 176.68 million barrels of oil equivalent, from 184.1 million barrels in the prior quarter.

Shares in London at 0845 GMT were up 10 cents, or 0.5%, at $21.25.

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