Net profit of Gazprom under IFRS in the first half of the year fell by 37% to 381.3 billion rubles, despite the growth of gas supplies to Europe, to the main market of the concern, by 8.9%. This is stated in the report of the concern.
The proceeds of Gazprom declined only 5% to 3.2 trillion rubles. Most of the gas traditionally sold to Europe and Turkey. Supplies increased by 8.9% to 119.1 billion cubic meters. Gazprom managed to increase supplies in Russia, despite high competition from independent producers - by 13.1% to 124.1 billion cubic meters. m.
Revenue from the sale of gas to Europe fell - following the fall in the price of gas under contracts, which is partially tied to the price of the oil basket. The decrease in sales revenue, despite the increase in volumes, was 13%. Deliveries brought Gazprom 1.05 trillion rubles. The average price of gas fell by 13% to 11,113 rubles. For 1000 cu. m.
Stronger than the decline in sales, the drop in profit was due to a 2.9-fold decrease in Gazprom's financial income in the first half of the year, it follows from the reporting. Financial income amounted to 236.04 billion rubles. Against 700.3 billion rubles. In this article, Gazprom includes the effect of exchange rate differences and interest income. And in the first half of the year, the ruble appreciated by 17% against the dollar, and by 20% against the euro. Therefore, last year Gazprom's profit from exchange rate differences was 645.6 billion rubles, and this year - 191.4 billion rubles.
However, due to low prices, Gazprom's gas is popular in Europe this summer, which is supported by abnormally high temperatures in the continent. So, on August 24, Gazprom reported, it reached the peak of supplies to Europe. In comparison with last year, they grew by 12%. The growth in sales will support the financial position of Gazprom, analysts of VTB Capital wrote in connection with this.
However, if the financial indicators do not significantly increase and the ruble rate does not fall, Gazprom can reduce its net profit for the entire 2017. This means that it can affect the dividend payments of the company. In 2016, Gazprom returned 190.33 billion rubles to shareholders, or 20% of net profit. Although the dividend policy should pay the company up to 35% - the indulgence was made in view of the large profits from exchange rate differences and a large-scale investment program. If the profit in the second half of the year is comparable to the first, 35% of the net profit is 266.9 billion rubles, but 20% as last year - 152.5 billion rubles.