Russian gas giant Gazprom’s net profit fell by more than three times in 2022, the first year of Russia’s full-scale war against Ukraine, Russian business daily Kommersant reported on March 16, 2023.
The figures
Under Russian accounting standards (RAS), Gazprom’s net profit fell to about 747 billion roubles in 2022 from about 2.68 trillion roubles in 2021, a decline of more than 3.5 times, or roughly 73%, according to the report.
Revenue rose by 25% to 7.98 trillion roubles, boosted by high gas prices, but cost of sales rose by 73.5% to 4.77 trillion roubles and gross profit fell by 12% to 3.21 trillion roubles. Profit before tax was 1.02 trillion roubles, compared with 3.2 trillion a year earlier.
Supplies to Europe slump
Gazprom’s gas production fell to 412.6 billion cubic metres in 2022, as the company sharply cut supplies to Europe, which fell to historic lows, Kommersant said. Russia’s overall gas production fell by 11.8% to 672 billion cubic metres.
Losing Europe
Before the war, Europe was Gazprom’s most important export market. After the invasion, Gazprom cut or halted deliveries to many European customers, the Nord Stream pipelines were damaged by explosions in September 2022, and EU countries rapidly replaced Russian pipeline gas with liquefied natural gas and supplies from Norway and other producers.
Gazprom’s results under international financial reporting standards (IFRS), which consolidate its subsidiaries, are published separately.
Sources
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