Gazprom sees sharp decline in revenues

Russian gas giant Gazprom’s revenues from the sales of natural gas export dropped 51.6% in the first quarter of 2020 to $6.8 billion, Report informs, citing Russian media.

A statement by Federal Customs Service of Russia says that the pipelines decreased the gas export by 24% to 46.6 billion cubic meters.

In March 2020, Gazprom’s gas exports to Germany and Turkey respectively slipped 45% and 33% to 2.7 billion cubic meters and 9 billion cubic meters.

Experts said in May that the decline of gas price to $50 for 1,000 cubic meters would have a severe impact on the financial condition of Gazprom, which needs at least $100 for 1,000 cubic meters to get profit.

Fitch Ratings has reduced its forecast on the price for every 1,000 cubic meters in the most significant gas hubs of Europe by 36.6% from $194 to $123.

After specific difficulties, Gazprom said it would cut its investment program by 21.6% from RUB 1 trillion ($14.68 billion) to RUB 784 billion ($11.51 billion).