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Gazprom’s financial information under International Financial Reporting Standards (IFRS) for the three months ended March 31, 2021

Yesterday PJSC Gazprom issued its unaudited consolidated interim condensed financial information prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) for the three months ended March 31, 2021.

The table below presents the unaudited consolidated interim condensed statement of comprehensive income for the three months ended March 31, 2021 and for the three months ended March 31, 2020. All amounts in the table are presented in millions of Russian Rubles.

Net sales of gas increased by RUB 374,980 million, or 43 %, to RUB 1,240,586 million for the three months ended March 31, 2021 compared to the same period of the prior year.

Net sales of gas to Europe and other countries increased by RUB 270,145 million, or 59 %, to RUB 729,629 million for the three months ended March 31, 2021 compared to the same period of the prior year. The change was mainly due to the increase in average prices (including excise tax and customs duties) denominated in the Russian Ruble by 33 % and the increase in volumes of gas sold by 25 %, or 12.9 bcm. At the same time average prices denominated in US Dollar increased by 20 %.

Net sales of gas to Former Soviet Union countries increased by RUB 26,150 million, or 30 %, to RUB 113,269 million for the three months ended March 31, 2021 compared to the same period of the prior year. The change was due to the increase in volumes of gas sold by 28 %, or 2.6 bcm, and the increase in average prices (including customs duties) denominated in the Russian Ruble by 2 %. At the same time average prices denominated in US Dollar decreased by 9 %.

Net sales of gas in the Russian Federation increased by RUB 74,918 million, or 23 %, to RUB 397,683 million for the three months ended March 31, 2021 compared to the same period of the prior year. This change was explained by the increase in volumes of gas sold by 19 %, or 14.5 bcm, and the increase in average prices in the Russian Ruble (net of VAT) by 4 %.

Net sales of refined products (net of excise tax, VAT and customs duties) increased by RUB 76,720 million, or 16 %, to RUB 549,679 million for the three months ended March 31, 2021 compared to the same period of the prior year. The increase in net sales of refined products was mainly due to an increase in average prices denominated in the Russian Ruble in all geographic segments.

Net sales of crude oil and gas condensate (net of VAT and customs duties) increased by RUB 61,143 million, or 51 %, to RUB 182,004 million for the three months ended March 31, 2021 compared to the same period of the prior year. The change was mainly due to an increase in net sales of crude oil primarily caused by an increase in average prices of crude oil.

Operating expenses increased by RUB 327,152 million, or 23 %, to RUB 1,766,853 million for the three months ended March 31, 2021 compared to the same period of the prior year.

The increase in operating expenses was mainly caused by the change in the Foreign exchange differences on operating items. The foreign exchange loss on operating items amounted to RUB 26,524 million for the three months ended March 31, 2021 compared to the foreign exchange gain in the amount of RUB 115,584 million for the same period of the prior year. This change was mainly due to the revaluation of accounts receivable from foreign customers and loans issued, which was caused by the depreciation of the Euro against the Russian Ruble by 2 % for the three months ended March 31, 2021 compared to the appreciation of the US Dollar and the Euro against the Russian Ruble by 26 % and 24 %, respectively, for the same period of the prior year.

The increase of expenses in the item “Purchased gas and oil” by RUB 53,556 million, or 19 %, for the three months ended March 31, 2021 compared to the same period of the prior year was caused by an increase in average prices of gas and oil.

The increase in the item “Taxes other than on profit” by RUB 40,095 million, or 12 %, for the three months ended March 31, 2021 compared to the same period of the prior year, was mainly due to an increase in mineral extraction tax expenses, which was partially compensated by a decrease in excise tax expenses. The increase in mineral extraction tax expenses mainly caused by an increase in crude oil prices and higher rate as a result of tax maneuver.

The balance of foreign exchange differences reflected within the item “Net finance income (expense)” produced the gain in the amount of RUB 16,300 million for the three months ended March 31, 2021 compared to the loss in the amount of RUB 551,396 million for the same period of the prior year.

Gain attributable to the owners of PJSC Gazprom amounted to RUB 447,263 million for the three months ended March 31, 2021.

Adjusted EBITDA (calculated as the sum of operating profit, depreciation, impairment loss or reversal of impairment loss on financial assets and non-financial assets, less changes of allowance for expected credit losses on accounts receivable and impairment allowance on advances paid and prepayments) increased by RUB 193,649 million, or 38 %, for the three months ended March 31, 2021 compared to the same period of the prior year and amounted to RUB 700,596 million. This change was mainly due to an increase in sales.

Net debt balance (defined as the sum of short-term borrowings and the current portion of long-term borrowings, short-term promissory notes payable, long-term borrowings, long-term promissory notes payable, less cash and cash equivalents) decreased by RUB 135,308 million, or 3 %, from RUB 3,872,695 million as of December 31, 2020 to RUB 3,737,387 million as of March 31, 2021. This change was mainly due to an increase in cash and cash equivalents.

More detailed information on the IFRS consolidated interim condensed financial information for the three months ended March 31, 2021 can be found here.
Source: Gazprom

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