Russian oil and gas major Gazprom has recorded a 13% year-on-year fall in gas sales volumes during the first quarter of 2020, Kallanish Energy reports.
The company’s consolidated financial statements for the three-month period ending March 31, 2020 recorded total gas sales volumes of 138.1 billion cubic meters (Bcm), down from 158.9 Bcm in the Q1 2019.
Gazprom’s total net sales for gas during Q1 2020 fell to RUB 865.6 billion ($12.1 billion), a year-on-year decrease of 34%, attributed to “a decrease in average prices and volumes of gas sold in the Europe and other countries segment.”
Sales volumes to Europe and other countries during the quarter dropped 17% y-o-y last quarter to 51.6 Bcm, from 62.4 Bcm in Q1 2019. The average price for these sales plunged 37% y-o-y to an average of $162.1 per thousand cubic meters (Mcm).
Domestic sales volumes decreased by 8.4% y-o-y to 77.2 Bcm, with an average price of RUB 4,180.7/Mcm.
As a result, the giant gas company recorded a loss attributable to shareholders of RUB 108.08 billion ($1.51 billion) in the period, compared to a profit of RUB 559.51 billion ($7.85 billion) in Q1 2019.
“The external conditions in which Gazprom and the industry as a whole operate in 2020 are assessed by market analysts as extremely unfavourable,” said deputy chairman of the Gazprom management committee, Famil Sadigov.
“Under these conditions, the financial results that the company showed in the first quarter can be considered, to put it mildly, not bad. We generated a positive free cash flow and kept the debt burden at a comfortable level,” he added.
This post appeared first on Kallanish Energy News.