Russian gas giant Gazprom has released its 2014 results. During the year, gas production fell by 9%, from 488 bcm to 445 bcm, while gas condensate production remained broady stable (-1%, from 14.7 Mt to 14.5 Mt) and crude oil production rose by 3%, from 42.3 Mt to 43.5 Mt. Gazprom's power generation declined by 4%, from 163 TWh to 155 TWh, while heat generation soared (+12%). Where gas sales are concerned, gas sales to Europe and other countries fell by 8.6%, from 174 bcm to 159 bcm, while the average price contracted from US$381/mcm to US$349/mcm (-8.4%). In Russia, gas sales dipped by 4.5% to 232 bcm, while the average gas price rose by 8.1% (to Rub 3,531/mcm). Gas prices remained stable in the CIS countries (-1.9% to US$262/mcm), while gas sales fell by nearly 19% to 48 bcm.
Sales rose by 6.5% to Rub 5,589bn (US$109bn) but profit fell by 86% and amounted to Rub 159bn (US$3.1bn) in 2014. This collapse is mostly due to the fall in rubles against the US dollar and the euro (Rub 926bn or US$18bn in net exchange losses), to charge for impairment provision of accounts receivable of Ukrainian gas company Naftogaz (Rub 245.5bn, US$4.8bn) and of Moldovan gas company Moldovagaz (Rub 5.9bn, US$116m) to a lesser extent. Gazprom also recognized a Rub 124bn (US$2.4nn) loss from impairment of fixed assets and goodwill in oil production, refining and electric and heat energy generation and sale segments.