Public Joint Stock Company Gazprom (GAZP) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 increased to RUB 5,088,055 million, up 24% year-over-year, with net profit rising to RUB 1,095,966 million from RUB 330,996 million.

• Operating profit for the period was RUB 1,020,154 million, a 37% increase year-over-year, driven by higher sales and a gain from a bargain purchase.

• A significant gain of RUB 167,386 million was recognized from the acquisition of a controlling stake in LLC Sakhalin Energy.

• The Group's equity increased to RUB 17,571,751 million as of 30 June 2024, reflecting strong profitability and capital management.

Financial highlights

• Revenue for Q2 2024 was RUB 2,309,190 million, up 28% compared to Q2 2023; six-month revenue reached RUB 5,088,055 million, up from RUB 4,114,280 million.

• Net profit for the six months was RUB 1,095,966 million, with basic and diluted EPS at RUB 43.19, up from RUB 11.99 year-over-year.

• Operating expenses rose to RUB 3,988,498 million for the six months, up from RUB 3,219,940 million year-over-year.

• Cash and cash equivalents decreased to RUB 669,228 million as of 30 June 2024, down from RUB 1,426,780 million at year-end 2023.

• Net cash from operating activities was RUB 430,177 million for the six months, down from RUB 681,220 million year-over-year.

Outlook and guidance

• The Group continues to monitor the impact of sanctions and economic volatility but does not foresee risks to business continuity.

• Amendments to the Russian Tax Code will increase the income tax rate from 20% to 25% effective 1 January 2025, potentially increasing deferred tax liabilities.

• The Group's investment program for 2024 totals RUB 2,639,472 million.