Now Russia. State control gas giant Gas Promise reported its
first annual loss since 1999.
The reason? Falling shipments to Europe and lower prices for
the fuel.
Following the results, the company shares fell by 4.4%,
the steepest decline in more than a year.
Gas pump, which also includes oil and power businesses,
posted a $6.84 billion loss in 2023.
In 2022, the company recorded a net income of about
$13 billion from revenue,
while revenue from gas fell by 40%
to about $55 billion, its oil revenue.
Rules by 6.7% to about $35 billion.
It's power utilities business increase by over 8.8%
to $56 billion. Two big factors have played a role
in gas Proms declining earnings,
restricted gas flows to Europe following the Ukraine war and
plunging gas prices due to mild weather,
sluggish demand and brimming inventories.
While Gazprom continues to ship pipeline gas to several European
countries last year,
its flows to Europe fell to the lowest since early
1970s.
This year, Russia expects its gas shipments via pipelines will
increase 18%
to 108 billion cubic meters.
But even as more supplies head to China,
it is unlikely to offset the loss of the European
market.
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