MOSCOW, Aug. 26 (UPI) -- Russian energy giant Gazprom posted a decline in net profits of 61 percent on the heels of low gas sales in European and domestic markets.
Gazprom posted a $3.5 million loss in the first three months of the year as operating costs soared nearly 20 percent.
The largest gas company in the world posted a decrease in net gas sales in the three months ending March 31, which Gazprom said was explained by an 11 percent drop in the volume of gas sold, or roughly 416.7 billion cubic feet.
Crude oil and gas condensate sales dropped 38 percent primarily due to losses suffered by Gazprom Neft, the oil arm of the energy monopoly.
Government officials said last week that gas debt from Russian customers rose as the global financial crisis gripped regional economies, with debt to Gazprom rising by 27 percent compared with 2008 levels.
Analysts had said efforts by Gazprom to expand its global footprint in 2009 were in stark contrast to financial setbacks in the Russian market as sales plummet in the economic recession.
A January row with Kiev over gas debts and contracts with Gazprom sparked a push in European markets to diversify an energy market that relies on Russia for as much as 25 percent of regional demands.
