Gateway 2 Russia, Russia
Nov 22 2004

Gazprom IAS H1 consolidated net profit dn by 13.3% to 89.964 bln rbl,
revenues up 11.8% to 471.474 bln rbl.

Gazprom announced its H1 IAS consolidated net profit lowered 13.3% on
year to 89.964 bln rbl vs. 103.761 bln rbl in the first six months of
2003.

Aggregate revenues increased by 11.8% to 471.474 bln rbl from 421.827
bln rbl, gas sales revenues accounted for 80% of the amount (82% a
year earlier), 32.701 bln rbl, or 9% above the first half of the
previous year.

The revenues derived from Europe gas sales dropped by 6.394 bln rbl,
or 3% to the first half of 2003, to 215.941 bln rbl tied to 10%
reduction in rbl prices (less taxes) which was partially set off by
higher sales volume – up 8%, or 6 bcm (to Germany, Italy, France).

The revenues derived from the gas sales to the Near Abroad Countries
increased by 21% to 29.689 bln rbl. Sales volume widened by 27% or
6.2 bcm to partially recover the lower rbl prices which slid 4%.
Ukraine, Kazakhstan, Georgia, Armenia, Azerbaijan accounted for the
major portion of deliveries.

Domestic gas sales increased by 33.888 bln rbl, or 34%, to 133.472
bln rbl, following increased domestic prices which partially set off
lower volumes – dn by 2%, or 3.2 bcm.

Gas condensate sales revenues lowered by 96% to 2.955 bln rbl vs.
81.838 bln rbl a year earlier. Gas condensate, petroleum sales
widened 40% to 54.968 bln rbl vs. 39.129 bln rbl in the in the first
half of 2003. Gas transportation revenues increased by 16% to 15.297
bln rbl from 13.168 bln rbl.

Operating costs widened by 24.1% to 346.582 bln rbl from 279.374 bln
rbl.

Sales profit declined 12.3% to 124.892 bln rbl from 142.453 bln rbl.
Profit before taxes and minor deductions slid 10.8% to 129.172 bln
rbl vs. 144.793 bln rbl a year earlier.

Current profit tax amounted to 26.179 bln rbl, 7% up on year (24.469
bln rbl). Total profit tax declined 4% to 38.561 bln rbl from 40.236
bln rbl.

Profit before minors deductions lowered 13.3% to 90.611 bln rbl from
104.557 bln rbl.

Aggregate net debt increased by 596 mln rbl, or 0.1%, to 426.506 bln
rbl from 425.91 bln rbl early this year.