In 2024, the Russian gas monopoly Gazprom registered a net profit in accordance with international standards of 1.2 trillion rubles (approximately $14.6 billion), marking a significant increase compared to a net loss of 629.1 billion rubles in 2023. This data was published in The Moscow Times.
This is reported by Finway
The company noted that the increase in profit was made possible by the rise in gas supplies to China, as well as the increase in energy prices.
“A significant boost to net profit was provided by a reduction in negative exchange rate differences on foreign currency obligations, as well as an increase in interest income from cash placements, which offset the rise in interest expenses,” Gazprom reported.
The net profit, adjusted for non-cash items, which serves as the basis for dividend calculations, amounted to 1.4 trillion rubles. The company’s revenue increased by 25.9% to 10.7 trillion rubles. According to Gazprom, EBITDA in the fourth quarter of 2024 reached 966 billion rubles, and for the year, it rose by 76% to 3.1 trillion rubles.
Impact of External Markets on Gazprom’s Results
The publication noted that the increase in gas supplies to external markets, particularly to China, had a positive impact on the company’s financial results. “In particular, the positive effect on the fourth quarter result was due to the increase in gas supplies to external markets, including the rise in exports to China, which reached the maximum contractual level starting December 1,” said Gazprom’s Deputy Chairman Famili Sadigov. According to him, the gas business became the main source of profit in 2024, although other segments also demonstrated consistently high results.
Prospects for Russian Gas in China
Gazprom’s total debt remained at the level of 2023, amounting to 6.7 trillion rubles. The Russian government has planned further reductions in gas prices for China: in 2024, supplies through the Power of Siberia pipeline cost China $267.6 per thousand cubic meters, which is 30% lower than for European and Turkish clients ($376.9). In 2025, the gas price for China will decrease to $247.3, while for European buyers it will increase to $403 per thousand cubic meters.
In 2024, Gazprom pumped 31 billion cubic meters of gas to China, and in 2025, it will bring the Power of Siberia to its design capacity of 38 billion cubic meters per year, compensating for less than 20% of the pre-war exports to the EU, which reached 200 billion cubic meters.