Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
A Gazprom sign on the roof of building in Saint Petersburg, Russia, February 5 2024. Picture: REUTERS/ANTON VANGANOV
Moscow — Kremlin-owned gas giant Gazprom said on Thursday it plunged to a net loss of 629-billion roubles ($6.9bn) in 2023, its first loss in more than 20 years, amid dwindling gas trade with Europe, once its main sales market.
The results highlight the dramatic decline of Gazprom, which since the collapse of the Soviet Union has been one of Russia’s most powerful companies, often used as a leverage to solve disputes with its neighbours, such as Ukraine and Moldova.
Analysts had expected net income of 447-billion roubles, according to Interfax news agency.
According to Reuters analysis, it was Gazprom’s first 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 in 2022.
The company, now headquartered 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% early on Thursday afternoon.
Russia’s gas exports to Europe, once its primary export market, have slumped because of the political fallout from the conflict in 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 from sales in 2023, in contrast to a profit of 1.9-trillion roubles in 2022. Its total revenue fell to 8.5-trillion roubles last year from 11.7-trillion in 2022.
Core profit, or earnings before interest, taxes, depreciation and amortisation (ebitda), dropped to 618.38-billion roubles in 2023 from 2.79-trillion roubles in 2022, according to Reuters calculations.
“The full-year ebidta 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 calculations, Gazprom’s natural gas supplies to Europe plummeted 55.6% to 28.3-billion cubic metres in 2023. Gazprom has not published its own export statistics since the start of 2023.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gazprom plunges to first loss in 20 years
Moscow — Kremlin-owned gas giant Gazprom said on Thursday it plunged to a net loss of 629-billion roubles ($6.9bn) in 2023, its first loss in more than 20 years, amid dwindling gas trade with Europe, once its main sales market.
The results highlight the dramatic decline of Gazprom, which since the collapse of the Soviet Union has been one of Russia’s most powerful companies, often used as a leverage to solve disputes with its neighbours, such as Ukraine and Moldova.
Analysts had expected net income of 447-billion roubles, according to Interfax news agency.
According to Reuters analysis, it was Gazprom’s first 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 in 2022.
The company, now headquartered 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% early on Thursday afternoon.
Russia’s gas exports to Europe, once its primary export market, have slumped because of the political fallout from the conflict in 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 from sales in 2023, in contrast to a profit of 1.9-trillion roubles in 2022. Its total revenue fell to 8.5-trillion roubles last year from 11.7-trillion in 2022.
Core profit, or earnings before interest, taxes, depreciation and amortisation (ebitda), dropped to 618.38-billion roubles in 2023 from 2.79-trillion roubles in 2022, according to Reuters calculations.
“The full-year ebidta 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 calculations, Gazprom’s natural gas supplies to Europe plummeted 55.6% to 28.3-billion cubic metres in 2023. Gazprom has not published its own export statistics since the start of 2023.
Reuters
EU rails at Russia putting firms under ‘temporary external management’
Sasol makes the world carbon dioxide emissions blacklist
Russian oil refineries shudder under sanctions
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Gazprom investment in PetroSA subject to studies
Gazprombank funding of PetroSA refinery could threaten other banking ties
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.