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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Gazprom profits plunge 49.8% AFP - Tuesday, November 10 Send IM Story Print CEO of Russian gas giant Gazprom Alexei Milleri Moscow in June. Russian energy giant Gazprom, the world's biggest gas firm has said net profit plunged 49.8% in the first half of 2009 compared to the figure 12 months earlier owing to higher expenses. MOSCOW (AFP) - – Russian energy giant Gazprom, the world's biggest gas firm, said on Monday that net profit plunged 49.8 percent in the first half of 2009 compared to the figure 12 months earlier owing to higher expenses. Half-year profits fell to 305.8 billion rubles (10.6 billion dollars), compared to 609.4 billion rubles (21 billion dollars) in the first six months of 2008, the company said in a statement. Operating expenses and financial charges rose sharply as the cost of purchased gas soared 105 percent, reflecting an increase in prices for gas from Central Asia. "The increase in the cost of purchased gas was mainly caused by the increase in prices for gas from Central Asia and increase in gas trading activities on the European market," it explained. The company, which ships 65 percent of its exports to Europe, was also hard hit by a drop in European demand amid the economic downturn as states turned to stocks held in reservoirs in the former Soviet Union. But Gazprom head Alexei Miller last month said European demand for gas had grown in recent months to exceed pre-crisis levels. The company, which has its roots in the Soviet Union's Gas Industry Ministry, now has 17 percent of the global gas market and 60 percent of the Russian market. The state retains a controlling stake of 50 percent. It said that net sales in the first half fell by 6.6 percent to 1.6 trillion rubles (56.6 billion dollars). Sales of gas to Europe and other states had increased by 6.0 percent as higher prices across the world compensated for drastic falls in export volumes, it added. Gazprom said its debt for the six months to July had increased 31 percent to 1.3 trillion rubles (48 billion dollars) from 1 trillion rubles (34.5 billion dollars) at the end of last year. Recommend Send IM Story Print News Search Top Stories Google buys mobile ad firm in 750-mln-dollar deal Kraft Foods launches hostile Cadbury bid Women deprived of health care at key times in life: WHO Gazprom profits plunge 49.8% Britney 'upset' over Aussie lip-synching row: promoter More Top Stories » Most Popular Most Viewed Most Recommended Japan eyes solar station in space Britney 'upset' over Aussie lip-synching row: promoter Gold price hits record after 'Sri Lanka purchase' Obesity causes 100,000 US cancers every year: study Opel chief quits after GM decides to keep European unit More Most Viewed » Somali centenarian weds 17-year-old Mobile phone giant Nokia sues Apple over patents Fibre may keep asthma, diabetes at bay, study finds More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos Copyright © 2009 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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