Gazprom profits boosted by weak rouble

Russian energy giant Gazprom has announced a sharp rise in profits thanks in large part to a weak rouble, reports BBC.
Net profit for the first three months of the year was 382 billion roubles ($5.9 billion; £3.8 billion), up 71 per cent on a year earlier. Total sales rose 6 per cent to 1.65 trillion roubles.
Gazprom sells its gas in dollars, so a weak currency means the price of gas in roubles rises.
The weak rouble helped to offset a fall in the volume of sales of almost 10 per cent, to 132 billion cubic metres of gas.
This fall was partly due to sanctions imposed by the West following Russia's actions in the Ukraine.
It meant Gazprom shares were down almost 2 per cent in trading in Moscow despite the jump in quarterly profits.
With the price of oil - which is a key determinant of the price of gas - back below $50 a barrel, many analysts believe Gazprom results for the rest of 2015 will be weaker than the first quarter.

Gazprom profits boosted by weak rouble

Russian energy giant Gazprom has announced a sharp rise in profits thanks in large part to a weak rouble, reports BBC. Net profit for the first three months of the year was 382 billion roubles ($5.9 billion; 3.8 billion), up 71 per cent on a year earlier. Total sales rose 6 per cent to 1.65 trillion roubles. Gazprom sells its gas in dollars, so a weak currency means the price of gas in roubles rises. The weak rouble helped to offset a fall in the volume of sales of almost 10 per cent, to 132 billion cubic metres of gas. This fall was partly due to sanctions imposed by the West following Russias actions in the Ukraine. It meant Gazprom shares were down almost 2 per cent in trading in Moscow despite the jump in quarterly profits. With the price of oil - which is a key determinant of the price of gas - back below $50 a barrel, many analysts believe Gazprom results for the rest of 2015 will be weaker than the first quarter.