Gazprom gains traction

Net profit of JSC Gazprom for January-September of 2013 increased by 3.5 percent - up to 876.331 billion rubles, the company said.

This figure has increased from 846.592 billion rubles as compared to the same period of the previous year. The profit attributable to shareholders amounted 858.773 billion rubles, which is 3.8percent more compared to 827.188 billion rubles for the first nine months of 2012.

Sales revenues for the reporting period amounted to 3.773 trillion rubles, which is 12.5 percent higher than a year earlier. Net profit from gas sales to Europe and other countries increased by 15 percent - up to 1.224 trillion rubles.

Experts believe that this is primarily due to an increase in natural gas sales volumes in real terms by 14 percent, or 15.4 billion cubic meters, which was exacerbated by the growth of higher average prices in rubles (including customs duties) by 3 percent.

According to co-director of the analytical department of Investkafe, Grigory Birg, the company's revenue has grown less than was expected - by 7.4 % and amounted to 1204.5 billion rubles instead of 1.22 billion. However, the decline in net profit was less significant. It decreased by only 10.9 percent and amounted to 276 billion rubles, instead of the expected 248 billion rubles.

Company revenue will grow owing to the growth of gas supplies to Europe by more than 25 percent and to Ukraine.

In general, given that previously distributed information according to which the dividend for the year may decrease, the decline in profits (less than expected) should be well received by investors. To crown it all, it will be interesting to learn about the company's plans for transition periods for dividend payment in the amount of 25 percent of net profit under IFRS, which would increase the dividend yield of Gazprom shares from 8 to 11 percent.