The loss of the European gas market continues to ruin the gas monopoly.
According to the results of 2023, “Gazprom” received a loss under IFRS in the amount of $6.7 billion, follows from the company’s statements. A year earlier, the gas monopoly reported a profit of $13.4 billion.
Gazprom’s revenue fell 27% year-on-year to 2022. The revenue of the gas business fell by 43%, the oil business grew by 4%, and the electricity business increased by almost 9%.
This happened amid a decline in gas trade with Europe, which had been the company’s main market before the Russian invasion of Ukraine. According to The Moscow Times, Gazprom exported only 69 billion cubic meters of gas last year, the lowest volume since 1985. At the same time, supplies to Europe fell to the level of the second half of the 1970s – 28 billion cubic meters.
This is only the third time in its history that Gazprom has been in a deficit for a year: it finished 1998, when Russia defaulted, and 2020, when a pandemic hit gas demand and prices.
In December 2023, Gazprom deputy head Famil Sadygov said the company expected “confident financial results” for 2023. He argued that although prices and gas exports had fallen, Gazprom was on track to generate more than $4.3 billion in gas revenues in 2023 and $37 billion in revenues from other activities.
