Gazprom ends the third quarter with a loss of RUB 251.3 billion due to the weakening of the ruble

Gazprom ends the third quarter with a loss of RUB 251.3 billion due to the weakening of the ruble

MOSCOW (Reuters) - Russian gas concern Gazprom incurred a net loss of RUB 251.3 billion in Q3 2020 due to a paper loss related to currency revaluation, the company said in its IFRS financials.

A year ago, Gazprom received a net profit of 211.8 billion rubles for the same period..

The net loss on exchange rate differences due to the revaluation of loans and borrowings in foreign currency had a major impact on the financial result of Gazprom (MCX: GAZP), the company said in a statement..

In the third quarter, Gazprom's net loss on exchange rate differences amounted to 464 billion rubles, free cash flow was negative - minus 151 billion rubles.

Gazprom's net debt has grown by 41% since the beginning of the year - at the end of the third quarter it amounted to 4.5 trillion rubles.

EBITDA of Gazprom in the third quarter, according to Reuters estimates, decreased by 10 percent to 332.9 billion rubles from 368.9 billion rubles.

For nine months, Gazprom's loss amounted to 218.4 billion rubles against a net profit of 1.05 trillion rubles a year earlier.

Revenue of Gazprom in the third quarter decreased by 13.6% to 1.4 trillion rubles from 1.6 trillion rubles.

Average selling price of gas to Europe in the third quarter was $ 117.2 per 1,000 cubic meters.

Gazprom has raised its investment valuation for the group for 2020 to 1.76 trillion rubles from 1.68 trillion rubles.

In October 2020, Gazprom attracted a long-term loan from Sumitomo Mitsui Banking Corporation for 500 million euros under EURIBOR + 1.75% and maturing in 2025.

(Oksana Kobzeva. Editor Gleb Stolyarov)