Famil Sadygov: “Gazprom Group demonstrates good financial performance in first half of 2023”

Famil Sadygov, Deputy Chairman of the Gazprom Management Committee:

“In the first half of 2023, the Gazprom Group has demonstrated good financial results which are commensurate with those observed in the same periods of 2018–2019. The drop in exports to Europe was partially offset by increased supplies to China, which will continue growing in line with the contractual obligations, as well as by the efficiency of the oil business activities.

The Gazprom Group's EBITDA for the first six months of 2023 totaled RUB 1.228 trillion and EBITDA profitability for said period was at 30 per cent. The net profit attributable to the shareholders of Gazprom was received in the amount of RUB 296 billion in the first half of 2023; this is largely due to the effects of foreign exchange rate differences on financial items in the amount of RUB 567 billion in the situation where the ruble's decline for the period was 24 per cent against the US dollar and 26 per cent against the euro.

The dividend policy stipulates that the dividend base is adjusted for non-monetary items, thus protecting shareholder income from, inter alia, increased volatility of the foreign exchange market. Therefore, the dividend base for the first six months of 2023 amounted to RUB 618 billion.

The capital investments amounted to RUB 1.188 trillion in the first half of 2023, with their increase versus the same period of 2022 driven by the active work in progress to implement the Gazprom Group's strategic projects.

The Company maintains a significant liquidity cushion, which is currently at above RUB 1.1 trillion and therefore exceeds the Company's short-term debt obligations. As of the end of Q2 2023, the net debt (adjusted) amounted to approximately RUB 4.9 trillion, with its growth versus late 2022 largely driven by the foreign exchange rate differences already mentioned above.

With due consideration of all the relevant factors, the debt burden with regard to the net debt (adjusted)/EBITDA ratio was calculated at 1.9 in US dollars, thus staying within the comfort range.”