Russian state energy giant Gazprom is undergoing a significant restructuring as it faces its worst financial crisis in years, the Financial Times reported Wednesday, mentioning the business 2024 transformation presentation.Once Russias most lucrative company, Gazprom published a net loss of around $7 billion in 2023 its first because 1999 after Europe slashed its Russian gas purchases by more than 90% amid the full-blown invasion of Ukraine.While Gazprom has yet to launch its worldwide monetary statement for 2024, FTreported that the company recently posted its worst lead to modern history: a loss of 1.08 trillion rubles ($12.8 billion) under Russian accounting standards.Looking ahead, Gazprom could lose 15 trillion rubles (practically $179 billion) in between 2025 and 2034, according to FT.
The business likewise anticipates its gas exports to Europe and Turkey to be up to 47 billion cubic meters in 2025 and 34 billion cubic meters in 2034 a fivefold drop from 2019.
Gazproms deputy CEO Yelena Ilyukhina is reportedly spearheading a scaling down plan that includes shuttering a minimum of three departments, combining 8 divisions and consolidating the companys legal, tax and treasury functions.Ilyukhina is also thought to have pushed for cutting 1,600 managers from Gazproms head office in St.
Petersburg.
The company currently utilizes around 500,000 people.Her objective is to change Gazprom into a single, vertically incorporated business, with its most rewarding subsidiary, Gazprom Neft, playing a central function in the restructuring.Gazprom Nefts strong financial efficiency in 2023 contrasting with its moms and dad business losses apparently sustained one of the energy sectors initially significant internal power struggles since the intrusion of Ukraine, feet mentioned current and former Russian energy executives as saying.As part of the overhaul, some Gazprom Neft departments were gotten rid of, while others were placed under Gazproms direct control.
In 2024, Gazprom Neft likewise increased its dividend payments to its moms and dad company.The moves resulted in an exodus of senior executives at Gazprom Neft, momentarily easing tensions between its CEO Alexander Dyukov and Gazprom CEO Alexei Miller, whom FTdescribed as having polar opposite business philosophies and attitudes toward the Ukraine war.Gazprom and Gazprom Neft did not react to FTs ask for comment.The restructuring intends to move Gazproms class structure from strong subsidiaries controlling a weak center to a strong center with compliant subsidiaries, according to Ilyukhinas reported presentation.The whole business structure was integrated in an environment of consistent development, an unnamed source near Gazprom told FT.
But now whatever has changed.