Gazprom has reported a significant rebound in its financial performance for 2024, registering a net profit of Rbs1.2trn.

This marks a substantial recovery from a $7bn net loss in 2023, which was the company's first since 1999, according to a Reuters report.

The turnaround is attributed to improved gas business, a decrease in exchange losses on foreign currency liabilities and an increase in interest income from financial investments.

The gas business earned Rbs756bn last year, surpassing the oil segment's profit of Rbs649bn.

Gazprom's group revenue, which includes gas, oil and electric power businesses, rose by 25% to Rbs10.7trn, the second-highest result in the company's history.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) also saw a 76% increase to Rbs3.1trn in 2024.

Gazprom's deputy CEO, Famil Sadygov, said: “In 2024, the Gazprom Group demonstrated excellent performance in terms of several key financial indicators, which proved the efficiency and stability of its business model.”

Despite the positive financial outcome, Gazprom still confronts challenges due to plummeting gas sales in Europe.

The cessation of gas supplies to the region via Ukraine since 1 January, after the non-renewal of the previous transit deal with Kyiv, remains a significant hurdle.

Gazprom noted that it had only earned more in the years 2021 and 2022 when European gas prices reached record highs.

In response to US sanctions, Gazprom Neft transferred approximately 5.15% of its shares in Serbian oil and gas company NIS to parent company Gazprom in February.

The move, aimed at ensuring uninterrupted crude oil supply to Serbia, aligns with the sanctions imposed on Russia's oil sector on 10 January, which necessitated Gazprom Neft to divest its ownership in NIS within 45 days.

Following the transaction, Gazprom Neft's stake in NIS dropped to 44.85%, while Gazprom's share increased to 11.3%.