Russian state-controlled energy giants OAO Gazprom and OAO Rosneft Monday said quarterly earnings rose on higher global energy prices and increased exports.
Still, the outlook for this year remained uncertain because of weak European gas demand and possible changes in Russian taxes on oil exports.
Gazprom, the world's biggest producer of natural gas, said net profit for its fiscal third quarter, which ended September 30, rose to 174.63 billion rubles ($5.75 billion) from 131.65 billion rubles a year earlier. The increase was primarily because of foreign-exchange gains and lower taxes.
Gazprom supplies about a quarter of Europe's gas needs, but the company's market share dropped last year due to increased European use of alternative energy sources, including liquefied natural gas. However, the company said third-quarter exports rose from the second quarter led by a slight increase in European demand.
European demand for Russian gas -- the company's most lucrative market -- plummeted last year amid the economic slowdown and as Europe consumed more Norwegian gas. Third-quarter sales dropped to 770.79 billion rubles from 839.16 billion rubles.
Last year, the U.S. overtook Russia as the world's biggest producer of natural gas, partly because of increased shale-gas output in the U.S. Russia accounts for around one-fifth of global gas output and 12% of the world's oil production.
Gazprom's shares climbed 1.8% to close at 189.85 rubles.
Rosneft -- Russia's No. 1 oil company with a daily production of 2.28 million barrels -- said Monday that fourth-quarter net income more than doubled to $1.67 billion because of higher oil prices and increased production at its key Vankor field in East Siberia.
Revenue increased 35% to $14.57 billion, as the average price of Brent crude rose to $75.72 a barrel from $57.01.
The company's shares have lost close to a fifth of their value since reaching a one-year high of 271.7 rubles on Jan. 11, following a proposal by Russia's finance ministry to reverse no export duties on oil produced at some East Siberian oil fields, including Vankor.
But Rosneft Chief Financial Officer Peter O'Brien expressed confidence that the tax breaks will "remain in place for some time."
Rosneft's share price more than doubled last year, but is expected to stay under pressure until the government says the tax breaks will stay in place, analysts said.