Several Gazprom Clients in Europe Request Gas Price Revision

MOSCOW - Russia's OAO Gazprom has received requests this year from several European clients, including GDF Suez SA, to revise gas prices, a Gazprom executive said Thursday.

"This is normal customer behavior," said Sergei Chelpanov, deputy head of Gazprom's export arm. "I can't say what the outcome will be."

Mr. Chelpanov was speaking on a conference call after the announcement of the company's third-quarter results, which saw net profit double to 305 billion Russian rubles ($10 billion) compared with the same period last year on the back of a weaker ruble.

Gazprom has revised contracts for many clients in Europe, costing the company RUB133 billion in retroactive payments so far this year. Gazprom expects to recover about RUB30 billion of this in profit tax rebates from the government in 2013.

Gazprom's capital expenditures in 2012 will hit $44 billion, $4 billion higher than forecast, Gazprom Chief Financial Officer Andrei Kruglov said on the call.

Mr. Kruglov said earnings before interest, taxes, depreciation and amortization for 2012 would be in the range between $54 billion and $55 billion, while revenue would be $150 billion, according to preliminary figures.

Gazprom will keep its 2012 dividend at 25% of its net income, calculated according to Russian Accounting Standards, Mr. Kruglov said.


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