Russian gas export monopoly Gazprom reported better-than-expected first-quarter results on Wednesday but said the global credit crunch could have an impact on its cashflow forecasts. Gazprom, the world's largest gas producer, said its profit rose 32 percent to 286 billion roubles ($11 billion) from 217 billion in the same period last year, beating analysts' average forecast of 246 billion in a Reuters poll.
Revenues, calculated to international accounting standards, rose 48 percent to 903 billion roubles from 612 billion in the first quarter of 2007, beating the average forecast of 839 billion roubles.
But the company said the global liquidity crisis could affect its ability to refinance debts and may have an impact on its cashflow forecasts. "Such circumstances could affect the ability of the group to obtain new borrowings and re-finance its existing borrowings at terms and conditions similar to those applied to earlier transactions," Gazprom said.
"Deteriorating operating conditions for borrowers may also have an impact on management's cashflow forecasts and assessment of the impairment of financial and non-financial assets," it added. Gazprom said its net debt fell 10 percent to 1.1 trillion roubles as of 31 March 2008 due to "a significant growth of cash and cash equivalent balances on bank accounts of the group". It said operating expenses rose 34 percent to 537 billion roubles, as it increased purchases of oil and gas as prices rose.
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