Analysts say Gazprom's H1 results were positive

Gazprom's consolidated financial statements for the first half of 2003 that were made in accordance with the International Accounting Standards testify to a moderate pace of the implementation of the program on cutting expenses, the United Financial Group said in its analytical survey. Analysts believe that Gazprom authorities are unable (fully or partially) to control some expenses (foreign transit expenses, some taxes, energy prices and the volume of reserves). Gazprom's expenses in the reported period grew by 40 percent to $7.32bn. At the same time, the holding planned to decrease expenses by $1.3bn in 2003.

Meanwhile, analysts noted that the amount of Gazprom's net debt had not changed compared to the end of 2002. Gazprom continued restructuring its debts. As a result the share of short-term debts in the structure of the holding's debts dropped from 45 percent at the end of 2002 to 40 percent on June 30, 2003.

On the whole, analysts believe that the results were positive due to favorable external conjuncture and the ruble's strengthening, which influenced positively gas sales on the domestic market.

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