Gazprom Warns of Reduced Investment Program if Oil Price Decline Continues
Russia's Gazprom said Thursday that any further decline in crude oil prices may adversely affect its business and its investment program, after reporting a pre-tax profit for the nine months to September 30, 2014 that had fallen 31 percent to RUB 756.86 billion ($10.6 billion).
Although Gazprom's revenues for the first nine months of 2014 increased 6.2 percent to RUB 4 trillion ($56.1 billion), the firm's operating profit fell 15.6 percent to $14 billion.
Gazprom blamed some of the fall in profit on the decline in the value of the rouble, but noted the significant decline in world market prices for crude oil had an effect on its export revenues due to its long-term gas contracts being linked to oil product indices.
"Any further decline may adversely affect our business, results of operations, cash flows, financial condition and potentially our capital program," the firm said in a statement accompanying its nine-month results.
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