Gazprom Third-Quarter Net Falls 62% on FX Loss; Exceeds Estimate - Bloomberg Business

Gazprom Third-Quarter Net Falls 62% on FX Loss; Exceeds Estimate - Bloomberg Business:



"OAO Gazprom’s third-quarter profit fell 62 percent because of falling sales and a currency loss.



Net income dropped to 106 billion rubles ($1.5 billion) from 276 billion rubles a year earlier, the world’s biggest natural-gas company said today on its website. That exceeded the average estimate of 58.8 billion rubles from nine analysts surveyed by Bloomberg. The Moscow-based exporter had a foreign-exchange loss of 273 billion rubles, compared with a gain a year earlier. Third-quarter sales fell 5.9 percent to 1.13 trillion rubles.



Gazprom, which delivers about 30 percent of the European Union’s gas, faced the lowest export sales in 11 years in 2014 and cut output to a record low as Europe and Ukraine sought to diversify supplies. The company’s full-year non-cash currency loss may reach $25 billion, a risk for its dividend given sliding sales, Sberbank CIB analysts in Moscow wrote Wednesday in a note."



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