Russian oil producer Gazprom Neft reported on Friday that its first-quarter net profit fell 3.5% from a year earlier, reflecting continued pressure on the country’s energy sector amid volatile global oil markets and sanctions-related challenges.
The company, the oil arm of Russian gas giant Gazprom, said net profit for the January-to-March period reached 95.8 billion roubles ($1.35 billion), while revenue totalled 858 billion roubles.
Gazprom Neft also reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 310 billion roubles for the quarter, indicating resilient operational performance despite softer profitability.
The results come as Russian energy firms continue to navigate export restrictions, fluctuating crude prices and shifting trade flows following Western sanctions imposed over Moscow’s conflict in Ukraine.
Gazprom Neft remains one of Russia’s largest oil producers and refiners, with operations spanning crude production, refining and petroleum product sales across domestic and international markets.
While revenue remained robust, the decline in quarterly profit suggests rising costs and market pressures may have weighed on the company’s margins during the reporting period.
Russian oil companies have increasingly redirected exports toward Asian markets, particularly China and India, as Europe reduced its reliance on Russian energy supplies.
The company did not immediately provide further details on factors affecting earnings or offer updated guidance for the remainder of the year.
Shares in Gazprom Neft and parent company Gazprom are closely watched by investors for indications of the health of Russia’s broader energy sector.
The quarterly results underline how Russia’s major energy producers continue to generate substantial revenues, even as geopolitical tensions reshape global energy trade patterns.