Moscow — Russian oil major Gazprom Neft said on Thursday its second-quarter net profit fell 43% from the same period last year to 140.1 billion roubles ($1.5 billion) as sales declined.
Profits for global oil majors have dropped by about half from a bumper 2022, when Russia’s actions in Ukraine sent oil and gas prices soaring.
Russian companies have not been disclosing their financial results regularly since the start of what the Kremlin calls a “special military operation” in Ukraine in February 2022. Gazprom Neft did not publish its financial results last year.
The company, the oil arm of gas giant Gazprom, also said its April-June total revenues decreased to 821.6 billion roubles from 835.8 billion in the same period in 2022.
Gazprom Neft’s shares edged up by 0.4% in early trade in Moscow. Interfax news agency said the company’s six-month profit exceeded analysts’ expectations.
Russia’s energy sector has been under severe pressure from Western sanctions, imposed over Moscow’s actions in Ukraine. They include price caps and an embargo on purchases of Russia’s sea-borne oil.
However, the country’s oil production and exports have been propped up by a significant rise in sales to China and India, which are seen as politically close to Moscow.
($1 = 94.4875 roubles)
Reporting by Vladimir Soldatkin and Olesya Astakhova Editing by Mark Potter and Gareth Jones – Reuters