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    Gazprom Slides Back into Net Loss in Q3

Summary

The company blamed the result on foreign exchange losses and weaker prices.

by: Joe Murphy

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Gazprom Slides Back into Net Loss in Q3

Russia's Gazprom suffered a net loss of rubles 251bn ($3.3bn) in the third quarter, from a rubles 212bn net profit a year earlier, it reported on November 30, blaming the reversal on foreign exchange losses and weaker prices.

The company also posted a net loss of rubles 116bn in the first quarter as a result of price-related impairments and ruble devaluation, but recovered in the second quarter to a net income of rubles 154bn.

Gazprom incurred a rubles 464.3bn foreign exchange loss in July through September, versus a rubles 12.3bn gain a year before. This was largely the result of the revaluation of the company's foreign currency-denominated debt.

Revenues were down 14% year/year at rubles 1.4 trillion in Q3, owing to weaker prices in Europe. Gazprom sold its gas on average for $117.2/'000 m3 in the three months to countries outside the Commonwealth of Independent States (CIS), versus $169.8 a year before.

Sales volumes to non-CIS markets fell to 154.4bn min the first nine months of 2020, from 171.4bn m3 a year before. But they were up at 56.2bn m3 in Q3, compared with 53.5bn m3 in the same period of last year. Sales in Russia came to 33.5bn m3 in Q3, versus 36.5bn m3 a year earlier, and 151.1bn m3 in the first nine months of the year, compared with 162.9bn m3.

Operating profit came to rubles 135.1bn in Q3, down from rubles 191.8bn a year earlier.