Russia: Gazprom Sales Climb 25 Pct

Gazprom of Russia said its net sales of gas increased by RUB 182,329 million, or 25%, to RUB 903,819 million in the three months ended March 31, 2013 compared to the three months ended March 31, 2012.

For the three months ended March 31, 2013 net sales of gas to Europe and other countries increased by RUB 41,714 million, or 11%, to RUB 428,314 million compared to the three months ended March 31, 2012. This change was primarily due to increase in volumes of gas sold by 6%, or 2.7 bcm, which was reinforced by the increase of average realized prices in RUB terms (including customs duties) by 3%.

Retroactive gas price adjustments were recognized in the consolidated interim condensed financial information for the three months period ended March 31, 2013 as an increase of sales in the amount of RUB 73,430 million reflecting a decrease in previously accrued liability. In the consolidated interim condensed financial information for the three months ended March 31, 2012 effect of retroactive gas price adjustment, related to gas deliveries in the years 2010 and 2011, amounted to RUB 78,505 million. This change resulted in increase in sales by RUB 151,935 million.

Net sales of gas to FSU countries decreased by RUB 22,548 million, or 16%, to RUB 121,777 million in the three months ended March 31, 2013 compared to the three months ended March 31, 2012. The decrease of sales in this segment is explained by the decrease of volumes of gas sold by 9%, or 1.8 bcm, which was partially reinforced by the decrease of the average realized prices in RUB terms (including customs duties) by 7%.

Net sales of gas in the domestic market increased by RUB 11,228 million, or 4%, to RUB 280,298 million in the three months ended March 31, 2013 compared to the three months ended March 31, 2012. This is explained primarily by the increase in the average domestic price for gas by 15%, which was partially compensated by the decrease of volumes of gas sold by 9%, or 9.3 bcm.

In the three months ended March 31, 2013 net gas transportation sales increased by RUB 9,173 million, or 29%, to RUB 41,232 million compared to the three months ended March 31, 2012. The increase in net gas transportation sales was primarily due to an increase in volumes of gas transportation services rendered to independent gas suppliers and an increase in gas transportation tariffs.

In the three months ended March 31, 2013 profit for the period attributable to owners of OAO Gazprom totaled RUB 380,665 million which is RUB 19,262 million, or 5%, higher compared to the three months ended March 31, 2012.

Net debt balance decreased by RUB 98,784 million, or 9%, from RUB 1,071,214 million as of December 31, 2012 to RUB 972,430 million as of March 31, 2013. This decrease resulted from increase in cash and cash equivalents.

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LNG World News Staff, September 3, 2013; Image: Gazprom