Gazprom, the Kremlin-owned gas giant, announced today that its profit for the first half of the year has more than tripled compared to the same period last year.
Net profit soared to over 1 trillion roubles (£8.3 billion), driven by increased gas exports and effective cost management.
This follows a challenging 2023, when Gazprom faced a net loss of approximately $7 billion (£5.3 billion), marking its first annual loss since 1999. The downturn was largely due to a significant reduction in gas trade with Europe, its former primary market, which was impacted by the ongoing military conflict in Ukraine.
Deputy CEO Famil Sadygov reported via Gazprom’s Telegram channel that core earnings for January to June rose by 19% year on year to 1.459 trillion roubles, thanks to improved oil trade and higher gas exports, particularly to China.
He also highlighted that an increased stake in the Sakhalin Energy oil and gas project in Russia’s Pacific region contributed to the financial boost. Adjusted net profit, which is used as the basis for dividend payments, reached 779 billion roubles over six months.
In the second quarter, Gazprom reversed a loss from the previous year, reporting net income of 389.7 billion roubles compared to a loss of 18.6 billion roubles a year earlier.
As Russia continues to shift its trade focus from the West—due to extensive sanctions imposed over the Ukraine conflict—it has strengthened ties with Asia, especially China. Gazprom CEO Alexei Miller noted that natural gas exports to China have increased by 37% in the first eight months of the year.
