Gazprom Says Net Profits Slump to $2 Billion

Russian natural gas giant Gazprom’s second-quarter net income more than halved from the year-earlier period to 149.2 billion rubles ($2 billion), but it said energy markets were recovering from the impact of the COVID-19 pandemic, Reuters reported.

Oil and gas producers across the world have been affected by lower prices and a collapse in fuel demand because of movement restrictions to tackle the pandemic.

Russian companies have also been hit by a weaker ruble, which inflates debt denominated in foreign currency.

But the state-run Gazprom still managed to deliver a profit after a first-quarter loss of 116 billion rubles and said third quarter trading is improving.

Gazprom’s shares in Moscow edged up 0.7% in early trade on the day.

Gazprom’s Chief Financial Officer Famil Sadygov said the company was sticking to its previously announced dividend plans.

He said the markets have improved in the current, third quarter and spot gas prices have exceeded $100 per 1,000 cubic meters in Europe.

Gazprom said its April to June revenue fell to 1.16 trillion rubles from 1.78 trillion rubles in the same period of 2019.

The company’s natural gas sales to Europe, a major source of income, fell in the first half of the year by 47%, year-on-year, to 756.3 billion rubles ($10.3 billion).

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