Falling gas prices and weak ruble drive Gazprom to loss in third quarter

Russian state gas giant PAO Gazprom swung to a net loss in the three months to end-September amid a slump in the energy sector and a weak ruble.

The company reported a net loss of 2bn rubles (£17.9m) in the third quarter from a net profit of 106bn rubles in the same period a year ago. However, it beat analysts’ expectations for a loss of 17.5bn rubles.

A sharp decline in oil prices, which natural gas prices are tied to, hit the company’s results during the period. The decline in crude prices has shaken Russia’s economy, which contracted 3.7% last year, according to preliminary government estimates.

Meanwhile, a foreign exchange loss of 400bn rubles also cut into the group’s profit and loss statement.

Nevertheless, revenue increased 14% to 1.29trn rubles on high margins for gas sales to Europe.