FSUOGM: Russian gas company revenues set to more than halve in 2023

Russian natural gas companies could see their revenues plummet by over half in 2023 compared with the previous year, according to findings released on August 7 by Russian consulting firm Yakov and Partners.

After racking up $101bn in 2021 and $165bn in 2022, revenues will fall more than 50% year on year in 2023, Yakov, formerly the Russian arm of McKinsey, has forecasted. Annual revenues may recover to $97bn by the end of the decade, depending on global gas prices and new export projects coming on stream, such as the Power of Siberia 2 pipeline and additional LNG plants.

The share of export earnings in Russian gas companies’ revenue will drop to 50-60% in 2023, according to Yakov, versus 84% in 2022 and 74% in 2021. This is a result of Gazprom losing the majority of its market share in Europe, amid political fallout from the conflict in Ukraine, and a sharp decline in European gas prices from record highs.

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