MOSCOW: Second-quarter net income of Russian gas giant Gazprom declined by 17 percent year-on-year to 244.9 billion roubles ($3.8 billion), the company said on Monday, as spending grew. April-June sales increased by 5 percent to 1.33 trillion roubles.
Gazprom's results were also hit by lower oil prices, a benchmark in long-term gas deals with utility firms in Europe, its key source of revenues. The company is also under Western sanctions over Moscow's role in the Ukraine crisis.
Gazprom said that operational spending rose by around 16 percent to 1.23 trillion roubles in the second quarter.
It also said that average gas price for Europe and other countries fell by 18 percent to 12,798 roubles ($197.5) per 1,000 cubic metres in the first half of 2016, while supply volumes grew to 109.4 billion cubic metres from 80.4 bcm in the same year-earlier period.
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