pte20201130025 Business / Economy, Trade / Services
Corona crisis massively weakens rubles – falling export prices weigh heavily on state-owned company
|Gazprom plant: Loss of billions due to weak ruble (Photo: gazprom.com)|
Moscow (pte025 / 11/30/2020 / 13:11) – The Russian natural gas giant Gazprom http://gazprom.de suffered a loss of 251.3 billion rubles (around 2.8 billion euros) in the third quarter of 2020 compared to the previous year . For comparison: In the third quarter of 2019, the group had a profit of 211.8 billion rubles (about 2.3 billion euros). According to Gazprom, the main reason for the shortfall is the Russian national currency, which has been weakened by the Corona crisis.
Sales fell sharply
Gazprom’s sales in the third quarter of 2020 were the equivalent of 15 billion euros. In the same period of 2019, this figure was 17.5 billion euros. In the first nine months of 2020, the balance sheet is similarly weak. Net sales here fell by 30 percent to around 22 billion euros. “This change was mainly driven by a decrease in average prices and sales in Europe,” Gazprom said.
The lower export price for natural gas was particularly problematic for Gazprom. In the third quarter of 2019 it was still at $ 169.80 per 1,000 cubic meters, this year only at $ 117.20. The company’s debt servicing in foreign currencies sealed the high loss due to the weakening ruble. At the time this report went to press (12:58 p.m.), the Gazprom share was down 1.64 percent at 0.07 euros.