MOSCOW: Russian energy giant Gazprom swung to a full-year 2024 net profit of 1.2 trillion roubles ($14.76 billion) from previous year’s loss thanks to an improved gas business and rising interest income from financial investments, the company said on Wednesday.
Gazprom posted a net loss of almost $7 billion for 2023, its first since 1999, due to dwindling sales to the European Union, once its main source of revenue.
Gazprom is arguably the Russian business hardest hit by the international sanctions imposed after Russia’s invasion of Ukraine three years ago. Although Russia’s economy has been resilient, growing signs of strain have appeared in several industries.
Commenting on the 2024 results, Gazprom’s Deputy CEO Famil Sadygov said the group had a significant liquidity cushion of 1.034 trillion roubles.
“This reserve of funds on the balance sheet ensures the Group’s high financial stability even in the face of sanctions pressure,” he said.
Gazprom’s shares were up 1.15% on the Moscow exchange as of 1320 GMT.
Gazprom still faces challenges from plummeting gas sales in Europe as gas supplies to the region via Ukraine were halted on January 1 after the previous transit deal with Kyiv was not extended.
According to Gazprom’s report, its gas business earned 756 billion roubles last year, outstripping the oil segment, whose profit totalled 649 billion roubles.
Revenue of Gazprom’s group, which consists of gas, oil and electric power businesses, rose last year by a quarter to 10.7 trillion roubles, second-highest ever result for the company, it said.
Earnings before interest, taxes, depreciation and amortization jumped by 76% to 3.1 trillion roubles in 2024. The company said it earned more only in 2021 and 2022, when European gas prices were at their record-highs.
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