Gazprom profits expand

Gazprom said Wednesday its net profit climbed 11.4 percent in the first quarter as export volumes to Europe surged to a record level despite increasing tensions over dependence on Russian gas. The state-controlled group said its net profit rose to 371.6 billion rubles (5.1 billion euros, $5.9 billion at current exchange rates), beating analyst expectations, thanks to both increases in export volumes and prices. Operating profit jumped 59 percent from the January through March period last year to 467 billion rubles on an 18 percent increase in sales to 2.14 trillion rubles.
Gazprom historically generates most of its profits from exports to Europe, which climbed by 9 percent from the first quarter of last year to 71.5 billion cubic metres, the first time they rose above 70 billion cubic metre level.