mead cohen berger shevtsova garfinkle michta grygiel blankenhorn
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Gazprom’s Profit Problem
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  • Jacksonian_Libertarian

    This article fails to recognize that oil prices only crashed in the final 3 or 4 months of 2014, $50 per barrel or lower prices for all of 2015 will see many of these state owned oil monopolies in the red and on the road to bankruptcy.

  • Alex K.

    The conclusion is undoubtedly correct but for reasons unrelated to Gazprom’s net profit for 4q 2014. As Bloomberg reports, “Gazprom faced mostly non-cash losses in the third and fourth quarters.” I would guess the ruble’s slide inflated the ruble value of dollar-denominated liabilities, which had to be recorded as a non-cash foreign exchange loss.

    Gas prices under Gazprom’s EU contracts are typically linked to oil prices with a lag of several months and should not have plunged in 4q 2014, especially in ruble terms. This year is a different matter.

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