Gazprom and Lukoil see serious second quarter profit rise

0

Russian gas giant Gazprom reported a surge in second-quarter net profit, beating analysts’ expectations, as it benefited from rising energy prices. It said second-quarter net profit jumped to 259 billion roubles ($3.8 billion), from 48 billion roubles in the year-earlier period and above a forecast of 228 billion roubles in a Reuters survey of analysts.

Gazprom’s shares were up 1.1 percent after the results, outperforming the broader Moscow stock market, which was 0.8 percent higher, according to Reuters.

Gazprom shipped more than 101 billion cubic metres of natural gas to the EU and Turkey in the first half of the year, up 6 percent year-on-year and accounting for around a 34 percent share of Europe’s gas market.

Also, Russia’s second-largest oil producer, Lukoil, reported a 20 percent rise in second-quarter net profit helped by stronger oil prices and a weaker rouble. Net profit came in at 167.3 billion roubles ($2.5 billion) for the second quarter. Analysts, polled by Reuters, had expected a net profit at 171 billion roubles.

Lukoil, controlled by Vagit Alekperov and his deputy Leonid Fedun, said its earnings were supported by higher sales despite a decline in oil production after a global oil deal to curb output.

Shares were up 1.3 percent by 1228 GMT, outperforming the broader Moscow market, which climbed by 0.8 percent.

Sales in the second quarter increased to 2.06 trillion roubles, from 1.36 trillion roubles a year earlier.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to 295.2 billion roubles, from 179 billion roubles in the same period of 2017.

Lukoil also said its adjusted free cash flow jumped in the April to June quarter by more than 65 percent to a record 152 billion roubles.

Share.

Leave A Reply