Russian energy giant OAO Gazprom (GAZP.RS) Wednesday said net profit plunged 62% in the first quarter of 2009 due to lower demand at home and a standoff with neighboring Ukraine that reduced gas sales to Europe.
State-controlled Gazprom said net profit under International Financial Reporting Standards fell to 103.7 billion rubles ($3.3 billion) from RUB273.4 billion in the same period a year earlier, ahead of a Dow Jones Newswires poll of eight analyst forecasts, which had expected net profit of $2.77 billion (RUB87 billion).
Revenue edged up 2.2% to RUB931.4 billion from RUB911.8 billion. Higher prices somewhat offset falling demand and a January row with Ukraine, which reduced gas shipments to Europe - Gazprom's most lucrative export market - by just over 30%.
In Russia, revenue from gas sales dropped 9% as the recession damped demand for energy.
The world's largest natural gas producer also booked a RUB173 billion charge relating to the revaluation of U.S. dollar- and euro-denominated debt.
Gazprom stock - often seen as a proxy for Russia as a whole - has advanced by around 50% since January, in line with a recovery across the market.
At 0900 GMT, the company's local shares were flat at RUB169.18 each in Moscow.