Gazprom's Net Profit Reaches 25 Trillion Won by Q3, Already Record High on Annual Basis

[Image source=AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Thanks to the surge in natural gas prices, Russia's state-owned gas company Gazprom posted its highest-ever net profit this year, according to major foreign media reports on the 29th (local time).

Gazprom Vice Chairman Famil Sadigov stated on the same day that net profit reached 1.55 trillion rubles (approximately 24.7225 trillion KRW) by September this year, and with the fourth quarter still remaining, the annual figure has already surpassed the record high. He added that under current conditions, even more remarkable net profit results are expected in the fourth quarter.

Alexander Ivanikov, head of Gazprom's economic department, said, "Currently, Gazprom's gas export prices in ruble terms are at an all-time high," and "In the fourth quarter, prices in dollar terms will also reach record highs." Ivanikov added, "The high gas prices are not a temporary phenomenon."

Gazprom forecasted that the average natural gas price next year will not be lower than this year. It projected that high prices could be maintained due to low gas reserves in Europe, including Gazprom's storage facilities in Germany and Austria.

Europe is a major gas export region for Gazprom. Up to September this year, Gazprom's gas sales revenue increased by 77% year-on-year, reaching 3.5 trillion rubles. Of this, sales to Europe and Turkey surged by 177% to 2.5 trillion rubles.

According to Gazprom, natural gas prices have risen for six consecutive quarters. In the third quarter, prices nearly tripled compared to a year ago, reaching $304 per 1000㎥ (361,152 KRW). Prices have continued to rise in the fourth quarter as well.

Gazprom announced that its annual dividend this year will reach 29.71 rubles per share, more than double the previous 12.55 rubles.

Gazprom's dividends translate into revenue for the Russian government. The Russian government directly holds a 38% stake in Gazprom and indirectly holds a 12% stake through two other state-owned enterprises, totaling a 50% ownership stake.