Famil Sadygov: “We are confidently moving to successful completion of year”

Famil Sadygov, Deputy Chairman of the Gazprom Management Committee:

“We are confidently moving to a successful completion of the year. The positive trend observed in the first half of 2024 continued into its third quarter, thus forming the basis for the excellent financial results of the Gazprom Group in the first nine months of 2024  in general.

As compared to the first nine months of 2023, EBITDA rose by 23 per cent to RUB 2,141 billion, which is one of the highest values in the entire history of the Company. The financial results reflect the growth in gas supplies via all key routes, including the scheduled increase of gas exports to China, as well as the favorable pricing environment which became even better in the third quarter of 2024. It is a must to mention our efforts aimed at the containment of operating costs, the performance of the Company’s oil business which is consistently successful and the contribution of Sakhalin Energy to the consolidated results of the Group.

The net profit in the first nine months of 2024 totaled RUB 990 billion, which is a 2.8-fold increase against the net profit in the same period of 2023. It is to be noted in this regard that our results for the third quarter reflect a one-time effect from the growth in expenses for deferred income tax in the amount of RUB 210 billion, which arose due to the increase of the tax rate to 25 per cent effective from 2025. The net profit adjusted for non-monetary items (dividend base) reached RUB 842 billion as of the end of the reporting period.

The capital investments in the first nine months of 2024 totaled RUB 1,645 billion, which is a 7 per cent decrease versus the result observed a year earlier. These expenses were funded entirely from the operating cash flow, which amounted to RUB 1,659 billion taking into account the usual adjustments for changes in the amount of bank deposits. As a result, the free cash flow returned to positive and totaled RUB 14 billion.

The liquidity amounting to RUB 1,234 billion completely covers the Company’s debt obligations with a maturity of one year or less. The net debt (adjusted)/EBITDA ratio was 2.46, thus staying within the comfort range. We expect that the figures observed in the fourth quarter of 2024 will facilitate the reduction of the debt burden as the year-end result.”