The world’s largest gas producer, Russian Gazprom, announced on Tuesday that it increased its net profit by five percent in the first quarter, to 380.7 billion rubles (11.4 billion dollars).
The higher profit is based on a 19 percent increase in net revenue, which is primarily driven by a 25 percent increase in sales of Gazprom’s core product, gas, during the observed period, the statement said.
Gas sales in Europe and other countries have risen sharply due to increased sales volume, while net sales to countries in the former Soviet Union have fallen. In its home country of Russia, sales have only slightly increased, by four percent.
The group seems to have benefited from unusually cold weather in Europe in the early months of 2013, where its exports still cover a quarter of consumption.
In the entire previous year, Gazprom achieved a net profit of 38 billion dollars, representing a 10 percent decline compared to the previous year.
The company, controlled by the Russian state and built on the foundations of the gas ministry of the former Soviet Union, functions as a cornerstone of the modern Russian state and is a key source of foreign exchange revenue.
The Russian state is the largest shareholder, holding just over 50 percent of Gazprom’s equity. The company controls 18 percent of the world’s gas reserves and 14 percent of total production.
