Gazprom reports increases in 2002 net profit
Russian natural gas giant Gazprom said its net profit for 2002 jumped 119 % to 28.96 bn roubles ($ 1 = RUB 30.36) due
to lower tax payments. A consensus estimated from six analysts had Gazprom posting a net profit of RUB 74.5 bn.
Gazprom didn't disclose its earnings before interest, taxes, depreciation and amortization, which was expected to
total RUB 265.9 bn for the period.
Although the company saw a jump in net profit, its profits before taxes and minority interests slid 28.4 % to RUB
165.8 bn. Gazprom's net sales decreased 9.6 %, to RUB 644.69 bn in 2002 from RUB 712.97 bn in 2001.
This drop was entirely due to a 17.7 % decrease in revenues from European sales, although revenues on domestic sales
and those to the former Soviet Union posted increases of 9.5 % and 3.9 %, respectively, on the year. Volumes of gas
sold to Europe stayed flat, but revenues fell to RUB 335.12 bn from RUB 407.2 bn in 2001.
The decrease was the result of a 17.8 % decrease in the average price of exports toEurope, following a drop in oil
prices in the second half of 2001, Gazprom said. Changes in gas prices lag changes in international oil prices by
three to six months.
Gazprom said its current and deferred profit tax decreased 36 % on the year to RUB 136.13 bn. The gas giant's taxes
as a percentage of in 2002 decreased to 82.1 % compared with a rate of 92 % as a result of a cut in the profit tax
rate.
Gazprom said its net debt at the end of 2002 decreased 8.5 % to RUB 401.67 bn from RUB 439.19 bn as of Dec. 31, 2001.
