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Russia's Gazprom says 2014 net income falls 86% on weaker rouble

Russia's top natural gas producer Gazprom said on Wednesday its net income declined by 86 percent last year to 159 billion roubles ($3.1 billion) due to a weaker Russian currency and increased impairment charges.

Russia's oil and gas producers have suffered from weaker oil prices while a drop in the rouble has inflated their dollar-denominated debts.

A giant sign for OAO Gazprom stands above a building in Moscow, Russia
Andrey Rudakov | Bloomberg | Getty Images
A giant sign for OAO Gazprom stands above a building in Moscow, Russia

Gazprom has also cut sales of gas to Ukraine which used to be one of its key markets, due to a debt and pricing dispute.

The company said it sustained foreign exchange losses of 1.1 trillion roubles ($21.2 billion) last year, while charges for impairment and other provisions rose by 245.5 billion roubles, including for provisions related to its spat with Ukraine.

Total sales increased to 5.59 trillion roubles from 5.25 trillion roubles in 2013, Gazprom said in a statement.

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Gas sales to Europe and other countries declined by 8.5 percent to 159.4 billion cubic metres, while the average price it charged rose 11 percent to 13,478 roubles per 1,000 cubic metres.

Shares in Gazprom traded flat early on Wednesday, broadly in line with the MICEX index.