Gazprom's first-half profits fall by 12%

Gazprom, a Russian gas producer, reported that its first-half profit was 864 billion Russian roubles, or $10 billion, about 12% less than it had been a year earlier. The company attributed this to the stronger rouble.

The second-quarter profit, on the other hand, grew by more than 60% compared to 2024. This was mainly due to higher oil and gas costs.

The results are for the Gazprom group, whose assets include oil and gas production as well as electricity generation. Gazprom expects a growth in core earnings of between 6% and 7% this year due to an increase in supplies to China as well as domestic sales.

A stronger rouble will make its financial results in roubles appear weaker. This is because many of its sales were paid in foreign currencies. Gazprom, once the biggest natural gas supplier in Europe, has lost the majority of its European customers after the Russian war against Ukraine began in '2022. This has also deepened the economic and political rifts between the West and Russia.

(source: Reuters)