Gazprom Sees Red On Ruble

MOSCOW—Russian state gas giant PAO Gazprom swung to a small net loss in the third quarter of last year on a foreign-exchange loss from the weakening of the ruble.

Gazprom said on Friday that it had a net loss of 2 billion rubles ($26 million) in the three months to end-September compared with the same period the previous year, with the foreign-exchange loss of 400 billion rubles offsetting a 14% rise in revenue to 1.29 trillion rubles.

The Russian state-controlled gas group benefited from a higher ruble price for gas sales to Europe, Gazprom's most lucrative market, as the ruble's weakness compensated for the fall in the dollar price for natural gas. Gas prices are linked to the price for crude which has tumbled amid slack demand and plentiful supply on world markets.

Falling oil prices, recently threatening to drop below $30 a barrel, have weighed heavily on the performance of the Russian economy and value of the ruble. The dollar rose by nearly 80% in value against the ruble between the end of September last year and a year earlier, and has appreciated further since.

Gazprom said sales volumes to Europe were up 2% for the first nine months of last year to 125.3 billion cubic meters, driving revenues for the period 17% higher because of the higher ruble price.

Sales volumes in Russia, however, were down 5% to 150.6 BCM, as Gazprom faced increasing competition from other domestic producers.

Gas volumes sold to former-Soviet countries fell by 26%, as Ukraine, where Russia has been accused of supporting separatist rebels, preferred to source gas from Europe.

Write to James Marson at [e-mail]

(END) Dow Jones Newswires

January 15, 2016 04:55 ET (09:55 GMT)

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