Russia’s largest gas producer, Gazprom, has reported a more than 80 per cent plunge in net income for the second quarter, on a foreign-exchange hit to its non-rouble denominated debt.
The state-run gas exporting monopoly said on Tuesday its second-quarter net income was Rbs 47.9bn ($817mn), down from Rbs 244.9bn a year ago.
Analysts had forecast that the company would suffer a slump in income due to a foreign exchange loss from a revaluation of overseas debt. The Russian rouble has strengthened considerably in the past year due to higher oil prices.
Forecasts were for net income of Rbs 50.2bn, according to a survey conducted by Reuters.
Gazprom is undertaking a slew of high-cost infrastructure projects, including the Nord Stream 2 pipeline, to increase gas flows to the EU, its largest export market; the TurkStream pipeline to Turkey’ and the 4,000km-long Power of Siberia pipeline to China.
Revenue in the April-June quarter rose to Rbs 1.39tn from Rbs 1.33tn a year previously.