Russian gas giant Gazprom booked a net income for the third quarter versus a loss a year earlier, when it was hit by a one-off tax for the Russian budget.
Gazprom, which in 2023 booked its first annual net loss in 23 years on the plunge of its gas sales to Europe, has started making profits again in recent months.
Last year, Gazprom returned to a yearly profit, earning the equivalent of $14.8 billion.
For the third quarter of this year, the Russian gas giant reported on Friday a net income of $1.72 billion (134.2 billion Russian rubles). This compares to a net loss of $680 million (53 billion rubles) for the third quarter of 2024, when the company had to pay a one-off tax.
Gazprom’s revenues in the July-September 2025 quarter fell to $28 billion (2.18 trillion rubles), down from $30.8 billion (2.4 trillion rubles) for the same quarter last year.
Russia has hiked dramatically the so-called mineral extraction tax to raise funds for the war in Ukraine. These higher taxes and the slump in gas sales hit Gazprom in 2023 with a major annual loss, but the company has been reporting steadier results recently.
Meanwhile, Russian oil and gas revenues are poised to slump by 35% in November from a year earlier as the price of Russia’s crude has plunged and the local currency strengthened.
Russia’s budget is expected to receive $6.63 billion (520 Russian billion rubles) from oil and gas in November, a decline of 35% compared to the same month of 2024, Reuters calculations showed earlier this week.
Oil and gas revenues make up the single largest budget income item for the Russian Federation, which relies on these revenues for heavy spending on its war in Ukraine.
This month, the discount of Russia’s flagship crude grade, Urals, has widened to the highest level since May 2023 following the U.S. sanctions on Russia’s top oil producers and exporters, Rosneft and Lukoil.
By Charles Kennedy for Oilprice.com
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