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Downturn for Gazprom

Lower production kept down Gazprom in 2012. Photo: Gazprom.ru

Both production and sales were down for the gas giant in 2012.

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The company in 2012 produced a total of 478,7 billion cubic meters, down from 513 bilion cubic meters in 2011 and 508,6 billion in 2010, RBCdaily reports. The figures are also well below the company’s production plan for the year. On several occasions, leading company officials indicated that 2012 production would exceed 525 billion cubic meters.

The 2012 results are beaten negatively only by the crisis year of 2009 when the company produced 461 billion cubic meters.

Similarly, gas exports dropped. European consumers bought 3,5 percent less than in 2011 and the exports to former Soviet republic dropped with as much as 12,3 percent. In the domestic market, Gazprom increased sales with a slight 0,4 percent, RBC reports.

Still, the world’s biggest gas producer continues to maintain that it in year 2020 will be able to produce as much as 660 billion cubic meters, the figure included in its longterm development strategy.

Gazprom continues to make very good money. However, financial results for 2012 are unlikely to beat the record-good year of 2011 when the company topped Forbes’ list of the world’s most profitable companies. Then, as reported by BarentsObserver, net profits for the exceeded €34 billion. Figures for the first half of 2012 showed a 34 percent drop in net profits to $16.2 billion.

While the company’s 2012 investment plan amounted to 974.65 billion RUB roubles (€24,5 billion), the 2013 investments are planned at a level of 705,41 billion  RUB (€17,8 billion).