Gazprom Posts Drop In Q1 Profit

Russian state gas firm OAO Gazprom

reported a 41% drop in its first-quarter profit. Gazprom's quarterly net profit slipped to 223 billion rubles ($6 billion), versus analysts' estimates of 263.6 billion roubles. Its revenue rose 7% to 1.56 trillion rubles from 1.46 trillion roubles, while operating expenses increased 15% to 1.09 trillion rubles. Sales to Europe rose 3% to 46.7 billion cubic meters, while sales to former Soviet countries declined 10% to 16.3 BCM. Gazprom's losses from a weaker rouble rose to 172 billion roubles versus 22.6 billion roubles. Gazprom's shares gained 1.34% to close at $7.55 yesterday.