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Russia's Gazprom says it swings to Q2 net loss as exports to Europe slump

An employee works at Gazprom Neft's Omsk Lubricant Plant (OZSM) in Omsk

MOSCOW (Reuters) - Russia's Gazprom said on Tuesday it generated a net loss of 18.6 billion roubles ($197 million) in the second quarter of 2023 after a net profit of 1.03 trillion roubles a year earlier following the collapse of gas exports to Europe.

Gazprom has suspended the disclosure of its exports data, but according to Reuters calculations, supplies to Europe, once its key source of earnings, were about 15 billion cubic metres (bcm) in January-July compared with 62 bcm for the whole 2022.

"The decline in exports to Europe was partially offset by supplies to China, which continue to grow as part of contractual obligations, as well as the efficient operation of the oil business," Famil Sadygov, Gazprom's Deputy CEO, said on Telegram messaging app.

He also said the earnings were impacted by the rouble rate, which weakened 24% against the U.S. dollar in the first six months of this year.

The Kremlin-controlled company also said its net income for the first six months of the year fell to 296 billion roubles from 2.5 trillion roubles in January-June 2022, while its base for dividend payment reached 618 billion roubles for the period.

The company usually pays dividend of 50% of its adjusted net income.

($1 = 94.4250 roubles)

(Reporting by Vladimir Soldatkin and Oksana Kobzeva; Editing by Chris Reese and Tomasz Janowski)