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. Last Updated: 07/27/2016

Gas Profit Plummets by 30%

Gazprom said Monday that lower gas export prices pushed its first-half 2002 net profit under Russian accounting standards down by 30 percent.

Gazprom said in a statement that first-half 2002 net fell to 47.4 billion rubles ($1.49 billion) from 67.7 billion in the same period last year. Consolidated sales fell to 283.2 billion rubles from 312.8 billion in 2001.

"The change in financial results is mainly linked to the fall in the export price for gas," Gazprom said.

Revenues from gas sales fell 19.5 billion rubles to 237.9 billion rubles, the statement said. Cost of sales in the first half rose by 13.9 billion rubles to 173.4 billion.

"The average gas export price has fallen by around 20 percent year on year, so this drop comes as no surprise," said Valery Nesterov of Troika Dialog.

The company has yet to release its first-half results to international accounting standards.

Analysts have said they expect IAS net profit adjusted for deferred taxes to be in the $1.933 billion to $2.229 billion range compared with $2.308 in the first half of 2001.

Gazprom said in a separate statement Monday that it has imposed limits on Florida-registered Itera's gas supplies to Kazakhstan, Azerbaijan and Ukraine.

Itera owes Gazprom some $110 million for gas transportation and storage services, Gazprom said, adding that the limits are an extreme step only taken in cases of systematic nonpayment.

Itera was unavailable for comment.

(Reuters, MT)