Gazprom posts Q1 net profits

Net profits of the Russian gas monopolist Gazprom amounted to RUR66.8billion (about $2.19bn) in the first quarter of 2003. As the press service of the company reported, head of the holding's department for property management and corporate relations Alexander Krasnenkov made a corresponding statement at a meeting of Gazprom's delegation with the company's shareholders in Ufa (the Bashkir Republic of Russia). Official financial statements of the gas holding for 2002 have not been released so far. However, 2002 net profits are forecasted to reach RUR105bn (about $3.45bn).

Additionally, Krasnenkov pointed out that according to the estimates of DeGolyer & MacNaughton, an independent international auditor, the value of only 82 percent of Gazprom's hydrocarbon reserves amounts to $49.4bn, or RUR65 (about $2.13) per share. This is almost twice as much as the current market share price.

Krasnenkov reported that Gazprom was going to sell its non-core assets at auctions. It is planned to put a number of gas equipment producers and agricultural companies for sale. In 2003, Gazprom is expected to sell RUR6bn (abut $196.97m) in non-core assets.

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