On Wednesday, Russia’s state-owned energy company Gazprom announced that it achieved profitability in 2024 after experiencing a record net loss in the prior year.

The company declared a net profit of 1.22 trillion rubles (approximately $14.9 billion), a significant turnaround from the 629 billion ruble (around $7 billion) loss recorded in 2023, marking its first net loss in 25 years and the largest in its history.

Famil Sadygov, the deputy chairman, attributed the 2023 losses primarily to non-cash expenses. That year signified a critical shift for Gazprom as it was compelled to focus on Asian markets after European nations reduced their imports of Russian gas in response to Moscow’s full-scale invasion of Ukraine.

According to the exiled news organization Agentstvo, Gazprom’s profit for 2024 is among the five highest it has reported in the last 25 years.

The company experienced a 25% increase in revenue, totaling 10.7 trillion rubles ($130.8 billion), while expenses decreased by 3% to 2.4 trillion rubles. Gazprom indicated that its debt remained stable at 6.7 trillion rubles and it had over 1 trillion rubles in cash reserves.

Sadygov attributed the enhanced performance to increased gas exports to countries like China, a strengthening ruble that reduced foreign currency expenses, and a rise in interest income.

“Gazprom has fortified its financial standing,” he stated.

Despite these improvements, the company continues to face significant challenges. Earlier this year, Ukraine closed a key pipeline route, halting Russian gas shipments to Europe via its territory.

The Financial Times reported earlier that Gazprom could potentially incur losses of up to 15 trillion rubles (nearly $179 billion) between 2025 and 2034. In response to increasing financial pressures, the company initiated a major downsizing effort last year.