Gazprom reported a net loss of nearly 7 billion USD last year, as their gas business with Europe experienced a decline. The company released its 2023 financial report on May 2, revealing disappointing business indicators following a volatile year. Total revenue for Gazprom in the previous year reached 8,500 billion rubles, down from 11,700 billion rubles in 2022. Gas revenue specifically decreased by 40% to 4,880 billion rubles, resulting in a net loss of 629 billion rubles (6.9 billion USD).
The reduced gas supplies to Europe from mid-2022, as a response to Western support of Ukraine in the war, along with decreased demand, mild weather, and increased reserves, contributed to the company’s financial challenges. Gazprom’s shares closed more than 4% lower on the Moscow floor following the release of the financial report. Despite the overall decrease in revenue, some segments of the company saw an increase in revenue last year, including the oil segment (6.7% increase) and electricity segment (8.8% increase).
Looking ahead, Gazprom plans to invest 2,570 billion rubles this year, a 16% decrease from the previous year’s plan. However, Russia expects pipeline gas exports to increase by 18% to 108 billion cubic meters, driven by the growing volume of gas passing through the Power of Siberia pipeline to China. The company’s financial challenges reflect broader trends in the energy market and geopolitical tensions impacting their business operations.
