Russian energy giant Gazprom’s profit in the first half of 2020 fell by 26% to 1.8 trillion rubles (nearly $25 billion), according to its financial results statement released on Thursday.
The company’s earnings decreased by 277 rubles ($3,8 billion) in January-June period of 2020 compared to the same period of last year.
The company's natural gas exports to Turkey decreased by 42% to 4 billion cubic meters while exports to Europe fell by 18% to 78.9 billion cubic meters in the first six months of 2020, according to the statement.
Russian energy giant exported 1.6 billion cubic meters of natural gas to China through Power of Siberia pipeline in Eastern Siberia which started operations in December 2019. The pipeline transports natural gas from Yakutia to Primorsky Krai and China.
Gazprom, the world's largest producer of natural gas, is the only company in the country which has the authority to export natural gas through pipelines under Russian law.
According to data from the Russian Federal Customs Service, Gazprom's export price of 1000 cubic meters of natural gas dropped in June by 13% to $82 compared to the previous month.
Analysts say the price of 1000 cubic meters of natural gas must be above the range of $90 to $100 for the company to report income from natural gas exports.
Global demand for natural gas is expected to fall at a record pace, down 4% by 2020, according to the International Energy Agency (IEA).
By Sibel Morrow