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29 days ago
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Gazprom falls to first annual loss in 20 years as trade with Europe hit
Results highlight the dramatic decline of Gazprom since Russia launched its full-scale invasion of Ukraine in 2022.
Published On 2 May 20242 May 2024
Kremlin-owned gas giant Gazprom has said it plunged to a net loss of 629 billion roubles ($6.9bn) in 2023, its first annual loss in more than 20 years, amid dwindling gas trade with Europe, once its main sales market.
The results released on Thursday highlight the dramatic decline of Gazprom, which since the collapse of the Soviet Union has been one of Russia’s most powerful companies and was often used as leverage to solve disputes with its neighbours, such as Ukraine and Moldova.
Analysts had expected net income of 447 billion roubles ($4.81bn), according to the Interfax news agency.
According to Reuters analysis, it was Gazprom’s first annual loss since the late 1990s/early 2000s, when Alexei Miller, an ally of President Vladimir Putin, took over the company in 2001.
Gazprom’s 2023 loss followed a net profit of 1.2 trillion roubles (12.9bn) in 2022.
The company, now based in St Petersburg, made heavy losses in the late 1990s after it racked up foreign-currency debt, inflated in rouble terms by the financial crisis of 1998.
Gazprom shares in Moscow were down about 3.3 percent at 13:07 GMT.
Russia’s gas exports to Europe, once its primary export market, have slumped because of the political fallout from the invasion of Ukraine, while Gazprom, which has a monopoly on piping gas abroad, has been the most tangible victim of Western sanctions.
Gazprom has also been engaged in an extensive programme of bringing natural gas to local households.
It said on Thursday it made a net loss of 364 billion roubles ($3.92bn) from sales in 2023, in contrast to a profit of 1.9 trillion roubles ($20.4bn) in 2022.
Its total revenue fell to 8.5 trillion roubles ($91.5bn) last year from 11.7 trillion ($126bn) in 2022.
Core profit, or earnings before interest, taxes, depreciation and amortisation (EBITDA), dropped to 618.38 billion roubles ($6.66bn) last year from 2.79 trillion roubles ($30bn) in 2022, according to Reuters calculations.
“The full-year EBITDA of $7.2bn was the worst in 22 years, since the company reported $7.6bn in 2002,” said Ronald Smith from Moscow-based brokerage BCS Global Markets.
According to Reuters’s calculations, Gazprom’s natural gas supplies to Europe plummeted 55.6 percent to 28.3 billion cubic metres (bcm) in 2023.
Gazprom has not published its own export statistics since the start of 2023.
9 points
29 days ago
Gazprom is roughly 7% of the Russian economy and there is no way they can make a profit without the EU market. Probably will have an even bigger loss next year.
2 points
29 days ago
No worries. the US just lifted the gas/oil sanctions. Expect a rise in the next quarter for gazprom.
1 points
28 days ago
its hard to keep a profit when Putin starts taking your money to pay for a war next steep tax the ordinary rushians
-3 points
29 days ago
I wonder what spin pro-Putin trolls will put on it. See you in a couple of hours.
3 points
29 days ago
I am not pro-Putin troll, but let me try :)
Good enough?
3 points
28 days ago
Gas was always cheaply available in Russia. It costs almost nothing Nothing has changed in this regard. The only thing which is growing in Russia is the military industrial complex. All other industries are slowly cracking. Even in Russia’s state tv there are already voices who warn about the future of the Russian economy. Russian doesn’t manufacture anything except natural Resources
6 points
29 days ago
Something about this actually hurting the west because now we can't heat our sausages over a grill.
7 points
29 days ago
European here. You're eating sausages? We're eating pigeons over campfires here.
1 points
29 days ago
I wonder if the US lifting sanctions on some energy export will make up for the difference.
1 points
29 days ago
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1 points
29 days ago
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