Net profit of Russia’s Gazprom falls by a record number in the past six month

In the first half of 2017, the net profit of the Russian monopoly Gazprom fell to almost nothing - 17.4 billion rubles ($290 million USD), down from 194.417 billion rubles ($3.24 billion USD) in January-June 2016. This is shown by Interfax’s calculations based on the company’s materials using Russian accounting standards.

The data shows that in the second quarter of 2017, Gazprom had a loss of 90 billion rubles ($1.5 billion USD), whereas in April-June 2016 the parent company earned a symbolic profit of 7.2 billion rubles ($120 million USD).

According to the news agency, the financial performance of the company could have been spoiled by the growth of the euro against the Russian ruble, as well as the reevaluation of fixed assets conducted by the company, which led to an increase in depreciation, and hence cost.

Gazprom’s official quarterly financial statement is expected to be published in a week.

But already, the SPARK-Interfax system has published information about Gazprom and the value of its net assets as of June 30, 2017, which was 10.241 trillion rubles. At the end of March 2017, it was 10.522 trillion rubles ($180 billion USD). So for the last quarter, it decreased in value by 281 billion rubles ($4.68 billion USD).

The amount of the increase in the value of assets for the quarter (for the second quarter an amendment of 190 billion rubles ($3.17 billion USD) is made, which is the obligation to pay dividends) exactly corresponds to the size of the net profit (in this case, loss) for the quarter.

  Gazprom, Russia