Gazprom Registers First Net Loss in Decades with Europe Sales Down
Gazprom, the Russian state-controlled energy giant, has experienced its first annual net loss in over two decades. The company recorded a significant net loss of 629 billion roubles ($6.9 billion) for the year 2023, marking a sharp contrast to the 1.2 trillion roubles in net profit reported in 2022. This downturn reflects a substantial decrease in gas sales to Europe, which has traditionally been Gazprom's largest market.
The financial results, revealing a stark reversal in fortunes, come amidst Western sanctions and the geopolitical consequences of Russia's military actions in Ukraine. As a result of these factors, Gazprom's gas exports to Europe have more than halved. The impact on the company's finances has been compounded by lower fuel prices and reduced global shipments. Gazprom's total revenue declined to 8.5 trillion roubles from the previous year's 11.7 trillion roubles.
Gazprom's share price in Moscow also fell by approximately 3.3% following the announcement of the financial results, signaling investor reaction to the company's performance. The reported loss underscores the challenges facing Gazprom as it navigates the loss of the European Union market and attempts to adjust its business strategy in a rapidly changing global energy landscape.
