Gazprom, the Russian energy giant, will return to profit in 2024 with earnings of $14.8 billion

The Russian energy giant Gazprom reported a net profit for the full year 2024 of 1.2 trillion Russian roubles (14.76 billion dollars) compared to its loss in previous years. This was due to a better gas business as well as higher interest incomes from financial investments.

Gazprom reported a net loss for 2023 of nearly $7 billion, its first since the year 1999. This was due to a decline in sales to Europe, which used to be its primary source of income.

Gazprom has been the Russian company most affected by international sanctions since the Russian invasion of Ukraine in 2013. While Russia's economy is resilient, signs of stress are growing in several industries.

Gazprom's deputy CEO Famil Sadygov commented on the results for 2024 and said that the group has a significant liquid cushion of 1.034 billion roubles.

He said that "this reserve of funds in the balance sheet assures the Group’s high financial stability, even when sanctions are imposed."

Gazprom is still facing challenges due to the plummeting sales of gas in Europe. Gas supplies via Ukraine have been halted since January 1, after the previous transit agreement with Kyiv has not been extended.

(source: Reuters)