Gazprom expects profit to increase amid rising gas exports, strategic acquisitions
(MENAFN) Gazprom, Russia's state-controlled energy giant, reported a significant surge in profits for the first half of this year, reaching approximately 1.04 trillion rubles (USD11.3 billion). This figure represents more than a threefold increase compared to the same period in 2023, according to a business report released on Thursday. The remarkable rise in profits is attributed to several key factors, including an increase in gas exports through pipelines, robust oil sales, and the strategic acquisition of Shell's stake in the Sakhalin 2 project.
The company's performance marks a stark turnaround from the setbacks it faced in 2022, when its core business of exporting natural gas to Europe was severely affected. Gazprom's relations with the West deteriorated sharply following the onset of the war with Ukraine, leading to a significant decline in its European market. The impact was so profound that Gazprom recorded its first annual net loss in 2023 since the beginning of the 21st century, highlighting the challenges it encountered amid geopolitical tensions.
However, the first half of 2024 has seen a notable recovery in Gazprom's fortunes, driven by a rebound in Russian natural gas exports to Europe. Exports to this market, previously the largest for Gazprom, rose by more than 25 percent compared to the same period in 2023. Additionally, deliveries to China exceeded the volumes specified in the contract with China National Petroleum Corporation, reflecting strong demand from Asian markets. Looking ahead, Gazprom anticipates that its gas supply via pipelines to China will reach 38 billion cubic meters annually by 2025, signaling a strategic pivot towards bolstering its presence in the Asian energy market.
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