Russia's OAO Gazprom (GAZP.RS), the world's largest producer of natural gas, Monday posted a 33% increase in third-quarter net profit due to foreign exchange gains and lower taxes, but despite a drop in demand in the period.
Net profit attributable to shareholders for the period ending Sept. 30, under International Financial Reporting Standards, rose to 174.63 billion rubles ($5.74 billion) from RUB131.65 billion in the third quarter of 2008, above a Dow Jones Newswires poll of 11 analysts, which estimated net profit at the ruble-equivalent of RUB158.2 billion.
Sales in the period dropped 8% to RUB770.79 billion from RUB839.16 billion, as demand for Russian gas in Europe--the company's most lucrative market--plummeted amid an economic slowdown.
Gazprom supplies around a quarter of Europe's gas needs, but its market share dropped last year due to inflow of alternative energy sources. However, the company posted positive dynamics from the previous three months, led by a slight increase in European demand from the second quarter.
Operating income totaled RUB156.9 billion in the period, down from RUB306.08 billion a year earlier.
Gazprom's shares almost doubled last year amid a strong recovery in Russian equities. At 0721 GMT, the company's shares were trading down 1.3% at $6.0 each in Moscow.