Gazprom’s Q1 profits triple to $10.6 bln on strong winter sales

Gazprom’s Q1 profits triple to $10.6 bln

MOSCOW — Russia’s gas giant Gazprom said Thursday its net profit tripled to 324.9 billion rubles ($10.6 billion) in the first quarter of the year as the company capitalized on a cold winter in Europe.

The company said in a statement its profit rose to 324.9 billion rubles from 103.7 billion, beating analyst estimates.

Revenues rose by 14 percent to 956.8 billion rubles ($31.1 billion) in January-March.

Hit by declining oil prices in late 2008 and 2009, Gazprom faced its highest losses in a decade, but an extremely cold winter in Europe and Russia allowed the company to get back on track — Gazprom supplies a quarter of Europe’s gas needs.

Sales volumes in Europe rose 37 percent in January-March from the previous year, although Gazprom’s net gas sales in the region dropped 22 percent and average gas prices declined by 36 percent.

A stronger cash flow allowed the company to cut its net debt by 29 percent to 977 billion rubles ($31.8 billion).

Gazprom’s shares were up 0.3 percent in late morning trade on the MICEX stock exchange in Moscow.