Gazprom, the Russian energy company, returns to profits in 2024, bring in an annual revenue of $14.8 billion.
Updated Report:
GAZPROM'S 2024 PROFIT SOARS DESPITE EUROPEAN MARKET WOES
Amidst mounting challenges in the European market, Russian energy titan Gazprom declared a staggering net profit of 1.2 trillion roubles ($14.76 billion) for 2024, marking a drastic turnaround from a $7 billion loss in 2023. This rebound is attributed to improved gas business performance and increased interest income from financial investments, the company announced.
The previous year's loss was primarily due to dwindling sales to the EU, once Gazprom's primary revenue source. The company, which has been one of the businesses hardest hit by international sanctions following Russia's invasion of Ukraine, has exhibited remarkable resilience in the face of escalating industry strains.
In a statement, Gazprom's Deputy CEO, Famil Sadygov, highlighted the group's substantial liquidity reserves of 1.034 trillion roubles, ensuring financial stability even under sanction pressure. The company's shares increased by 1.15% on the Moscow exchange.
However, Gazprom continues to grapple with challenges such as plummeting gas sales in Europe, as gas supplies via Ukraine were halted on January 1 with the non-renewal of the transit deal with Kyiv.
In 2024, Gazprom's gas business generated a substantial earnings of 756 billion roubles, surpassing the oil segment's profit of 649 billion roubles. The combined revenue of Gazprom's G group, which includes gas, oil, and electric power businesses, rose by a quarter to a record-breaking 10.7 trillion roubles last year. Earnings before interest, taxes, depreciation, and amortization jumped by 76% to 3.1 trillion roubles.
As the economic landscape continues to evolve, Gazprom remains vulnerable, particularly to the loss of European gas markets, operational challenges due to limited pipeline capacity, and geopolitical risks in light of deteriorating relations with the West. Despite these challenges, Gazprom continues to navigate the complexities with resilience and determination.
- Gazprom's impressive profit of 1.2 trillion roubles in 2024, despite European market woes, can be attributed to improved gas business performance and increased interest income from financial investments.
- The company's substantial liquidity reserves of 1.034 trillion roubles, as reported by Deputy CEO Famil Sadygov, provide financial stability even under sanction pressure.
- Gazprom's earnings before interest, taxes, depreciation, and amortization jumped by 76% to 3.1 trillion roubles in 2024.
- The gas business generated a substantial earnings of 756 billion roubles in 2024, surpassing the oil segment's profit of 649 billion roubles.
- Despite the company's resilience in the face of escalating industry strains and international sanctions, Gazprom still faces challenges such as plummeting gas sales in Europe and operational challenges due to limited pipeline capacity.
- As the economic landscape continues to evolve, Gazprom remains vulnerable to the loss of European gas markets, geopolitical risks in light of deteriorating relations with the West, and potential tax implications due to ongoing sanctions and fluctuations in the industry and finance sector, particularly in the energy sector.
