Gazprom sales up, profit down in 2013

April 29, 2014

On April 29, Gazprom issued its audited consolidated financial statements prepared in accordance with International Financial Reporting Standards for the year ended December 31, 2013, Gazprom’s press service said.

Net sales of gas increased by RUB 314,716 million, or 12%, to RUB 2,971,823 million in the year ended December 31, 2013 as compared with the year ended December 31, 2012.

Net sales of gas to Europe and other countries increased by RUB 213,306 million, or 15%, to RUB 1,682,761 million in the year ended December 31, 2013 as compared with the year ended December 31, 2012. The increase in net sales of gas was mainly driven by an increase in the volumes of gas sold by 15%, or 23.3 bcm, which was reinforced by the increase in average prices in RUB terms (including customs duties) by 1%.

Net sales of gas to FSU countries decreased by RUB 109,196 million, or 21%, to RUB 420,320 million in the year ended December 31, 2013 as compared with the year ended December 31, 2012. The change was due to a 10% decrease in average prices in RUB terms (including customs duties) and a 10%, or 6.7 bcm, decrease in the volumes of gas sold in the year ended December 31, 2013 as compared with the year ended December 31, 2012.

Net sales of gas in the Russian Federation increased by RUB 33,464 million, or 4%, and amounted RUB 794,349 million in the year ended December 31, 2013 as compared with the prior year mainly due to a 14% increase in the gross average domestic gas prices. This effect was partly offset by 8%, or 22.0 bcm, decrease of gas sold in the year ended December 31, 2013 as compared with the prior year.

Net sales of refined products increased by RUB 142,498 million, or 12%, to RUB 1,351,713 million in the year ended December 31, 2013 as compared with the prior year primarily due to an increase in volumes sold by Gazprom neft Group to customers in Europe and other countries and in the Russian Federation and also due to an increase in prices. The increase in sales of refined products was partially offset by a decrease in sales of crude oil and gas condensate by RUB 65,344 million, or 24%. The decrease in sales of crude oil was caused by a decrease in volumes of crude oil sold to customers in Europe and other countries. Reallocation of sales between operating segments is related to inclusion of Gazprom neftekhim Salavat Group’s results in the consolidated financial statements in June 2012.

Operating expenses increased by RUB 179,061 million, or 5%, in the year ended December 31, 2013 to RUB 3,600,908 million as compared with the prior year. In the year ended December 31, 2013 profit for the year attributable to owners of OAO Gazprom totaled RUB 1,139,261 million, which is RUB 85,213 million, or 7%, lower compared to the year ended December 31, 2012. Net debt balance increased by RUB 41,584 million, or 4%,