Gazprom tries to reassure Europe with results

Sales were up but income was down for Russian state energy Gazprom according to its full year figures for 2013. Its results signed off by Chairman Alexei Miller yesterday show […]

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By Vicky Ellis

Sales were up but income was down for Russian state energy Gazprom according to its full year figures for 2013.

Its results signed off by Chairman Alexei Miller yesterday show sales grew 10% to $146.7 billion (£87bn), while income slipped 7% from 2012 to US$ 31.9 billion (£19bn).

The energy giant adopted a confident tone in a statement released by its PR company, emphasising “strong commitment” to its European partners. The statement added Gazprom was the only producer able to increase its gas deliveries to Europe up to 162.7 billion cubic meters (bcm), up from 139.9 bcm the year before.

In the briefest of nods to politics and Ukraine tensions, the results acknowledged the potential of international pressure on Russian business.

The document stated “political and economic instability, ongoing threat of sanctions, uncertainty and volatility of the financial markets” could have “negative effects” on the Russian financial and corporate sectors.

A drop in gas supplies from Norway, Algeria, Libya and Qatar meant the Russian firm’s sales for gas to Europe rose 15% suggested the results.

The volumes of oil and stable gas condensate sold to Europe and other countries fell nearly 38%. Gazprom said this was explained by “more efficient refining of available oil versus sales of crude” in Europe and other foreign markets.