MOSCOW, August 26 (RIA Novosti) - Russia's energy giant Gazprom posted a 62% decline in net profits in the first quarter of 2009 year-on-year as calculated to International Financial Reporting Standards (IFRS).
Net profit declined to 103.7 billion rubles ($3.3 billion) in January-March, the company said. Gazprom said sales rose 2% to 931.4 billion rubles ($29.7 billion).
The gas monopoly said exports to Europe and other countries dropped by 31% to 16.4 billion cubic meters to 31.7 billion in the first quarter compared to the similar period last year. But earnings grew 28% to 433.24 billion rubles ($13.8 billion) due to higher prices for European consumers.
Exports to former Soviet republics also dropped 61% in the period, but earnings increased 2% to 85.28 billion rubles ($2.7 billion) as gas prices rose.
The state-controlled company's profits were affected by the devaluation of the ruble against the backdrop of the domestic and global economic slump. Gazprom also had a gas debt and pricing row with Ukraine in January, which led to the suspension in supplies to the EU.
