Massive losses have seen the energy giant drop out of the country’s top 100 most-profitable companies, according to the magazine

Russia’s state-run energy giant Gazprom has dropped out of this year’s Forbes list of the country’s 100 most-profitable corporations after recording its biggest net loss in nearly three decades. The company had topped the magazine’s list in 2023.

Russian oil major Rosneft took the top spot this year with a reported net profit of more than $16.5 billion in 2023. The second and the third spots in the ranking were occupied by state-controlled banking giant Sber and energy company Surgutneftegaz, which registered net profit of slightly over $16.2 billion and $14 billion, respectively.

According to the business magazine, Gazprom had benefited from high gas prices in Europe in 2022, but its financial results were significantly impacted by the loss of this key market last year.

In May, the corporation reported a net loss of $6.8 billion for 2023 – its first annual loss since 1999 – in the wake of dwindling gas exports due to Western sanctions. The result came in stark contrast to a net profit of $13.2 billion recorded during the previous year. The firm’s total revenue fell to $92 billion in 2023 from $126 billion in 2022.

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Russian gas giant posts first loss since 1990s

Russian gas exports to its traditional markets across the EU have seen a major decrease due to sanctions related to escalation of the Ukraine conflict and the sabotage of the Nord Stream pipelines, which previously provided Russia’s major gas route to the region. In 2023, Gazprom’s natural gas supplies to Europe dropped by 55.6% to 28.3 billion cubic meters (bcm) in 2023, according to Reuters’ calculations.

The company has managed to reorient the energy trade to Asia, with China emerging as one of its largest buyers. The volume of Russian gas supplies to China could reach some 100 bcm annually when the Power of Siberia pipelines are fully operational. Once that happens, China will fully replace the EU in terms of purchases of Russian gas, according to Gazprom.