Today, Gazprom’s Management Committee has addressed preliminary operating results of Gazprom over the first half of 2005.

Within said period, Gazprom supplied all its customers with 282.8 bcm of gas, which is 1.2 bcm up on the target. The Company also commissioned compressor stations having 128 Mw in overall capacity and hooked up 52 development gas wells, including 23 wells on the Zapolyarnoye, 13 on the Yety-Purovskoye, 13 on the Aneryakhinskaya area of the Zapolyarnoye, two on the Yen-Yakhinskoye and one well on the Urengoyskoye field.

The Gazprom’s balance of payments for the first half of 2005 is mainly featured by the following data:

• RUR 785.9 bln (104.1% on the forecast) in overall income and revenues;
• RUR 762.7 bln in total liabilities, expenses and investments;
• RUR 40.9 bln in financial borrowings;
• RUR 89.8 bln in account balance as of the period-end.

Within the first half of 2005, cash income and revenues exceeded the schedule by RUR 28 bln and amounted to RUR 717.3 bln (103.6% on the forecast), including RUR 553.5 bln (105.4% versus the forecast) arisen from sales of gas.

At the same time, total liabilities, expenses and investments shrank RUR 23.5 bln resulting in the current account balance as of the period-end and allowing to avoid taking the loans projected earlier. Overall borrowings (excluding funds used for re-financing purposes) accounted for RUR 40.9 bln (50.4%, as compared to the schedule).

Operational shipping costs and Gazprom’s expenses on key account settlement with subsidiaries decreased RUR 3 bln and RUR 3.9 bln, respectively.

Capital investments were financed by 102.6% versus the forecast.

Gazprom’s overall earnings for the first half of 2005 accounted for RUR 720.7 bln, RUR 44.1 bln up on the target (6.5%), with gas shipping increasing RUR 47.8 bln against the target.

Gazprom’s sales earnings totaled RUR 148.9 bln, a RUR 38.2 bln increase on the schedule.

Net profit over January-June 2005 stood for RUR 88.4 bln, a 2.1fold jump versus the target.

Gazprom’s core business units were tasked with preparing amendments to the 2005 budget and investment program, taking into account operating accomplishments over the first half.

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