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Gazprom experiences dramatic fall from grace
(MENAFN) Russia’s state-owned energy giant Gazprom has experienced a dramatic fall from grace, no longer featuring on Forbes' annual list of the country’s 100 most-profitable corporations. This marks a significant turnaround from 2023, when Gazprom held the top position. This year, Russian oil major Rosneft has taken the lead, reporting a net profit exceeding USD16.5 billion for 2023. Following Rosneft, state-controlled banking giant Sber and energy company Surgutneftegaz claimed the second and third spots, with profits of just over USD16.2 billion and USD14 billion, respectively.
The decline in Gazprom's fortunes is stark, primarily due to the adverse effects of lost markets and Western sanctions, which have heavily impacted its financial results. After enjoying high gas prices in Europe in 2022, the company reported a net loss of USD6.8 billion for 2023—its first annual loss since 1999. This was a significant decline compared to the previous year, when it recorded a net profit of USD13.2 billion. The firm’s total revenue also fell dramatically, dropping to USD92 billion in 2023 from USD126 billion the year before.
The contraction in Gazprom’s natural gas exports to Europe has been particularly pronounced. According to Reuters, supplies to traditional markets in the EU plummeted by 55.6 percent, totaling just 28.3 billion cubic meters in 2023. This decline can be attributed to sanctions stemming from the escalation of the Ukraine conflict and the sabotage of the Nord Stream pipelines, which had previously served as a crucial conduit for Russian gas to the region.
In summary, Gazprom's recent struggles underscore a significant shift in Russia's energy landscape, as the company navigates a complex web of geopolitical challenges and market changes.
The decline in Gazprom's fortunes is stark, primarily due to the adverse effects of lost markets and Western sanctions, which have heavily impacted its financial results. After enjoying high gas prices in Europe in 2022, the company reported a net loss of USD6.8 billion for 2023—its first annual loss since 1999. This was a significant decline compared to the previous year, when it recorded a net profit of USD13.2 billion. The firm’s total revenue also fell dramatically, dropping to USD92 billion in 2023 from USD126 billion the year before.
The contraction in Gazprom’s natural gas exports to Europe has been particularly pronounced. According to Reuters, supplies to traditional markets in the EU plummeted by 55.6 percent, totaling just 28.3 billion cubic meters in 2023. This decline can be attributed to sanctions stemming from the escalation of the Ukraine conflict and the sabotage of the Nord Stream pipelines, which had previously served as a crucial conduit for Russian gas to the region.
In summary, Gazprom's recent struggles underscore a significant shift in Russia's energy landscape, as the company navigates a complex web of geopolitical challenges and market changes.
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