Gazprom suffers losses for first time in its history
Gazprom suffers losses for first time in its history

Back in 2016, the Russian energy giant was supposed to become the world's first trillion-dollar company. However, it began to run a losing business. Gazprom's first-quarter net profit decreased for the first time in its entire history. The amount of loss totaled 306 billion rubles. Notably, Europe, the largest importer of Russian gas, was not under quarantine in the first quarter. Besides, the winter period is traditionally considered the best for the Russian energy conglomerate, as demand for gas and, therefore, revenues usually hit the highest levels. Moreover, previously, when Gazprom suffered some losses in the second and third quarters, they were always compensated for by the most profitable first quarter. Sometimes, its first-quarter revenues reached half of the annual profits. The fourth quarter which partly relates to the winter period is of major importance as well. However, given the current situation in the energy market, the fourth-quarter earnings will hardly help the company recover. Now the biggest challenge for Gazprom’s leadership is to explain its failure. The coronavirus pandemic and useful sanctions cannot be the reason. The only thing the company can shift the blame onto is the weather, that is, the abnormally warm winter.

Published: 2020-05-22 05:54:07 UTC
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