Surgutneftegas PJSC records sharp drop in profits, reflecting challenges facing Russia's oil and gas industry. (Source: Rogtec Magazine)

According to the company's report, Surgutneftegas' net profit was only 139.886 billion rubles ($1.64 billion) in the first 6 months of the year, down more than 6 times compared to the same period in 2023 (846.568 billion rubles - equivalent to $9.9 billion).

Surgutneftegas's sharp drop in profits came amid global economic uncertainty and volatile oil prices.

In the first quarter of 2024, the company still recorded a profit of 268.545 billion rubles ($3.14 billion). However, Surgutneftegas faced a loss of 128.659 billion rubles ($1.5 billion) in the second quarter, leading to a serious decline in business results.

Surgutneftegas' pretax profit also fell sharply in the first half of 2024, reaching just 168.751 billion rubles ($1.89 billion) compared to 1.012 trillion rubles ($11.84 billion) in 2023. The company's income tax fell to 28.864 billion rubles ($340 million), much lower than 165.776 billion rubles ($1.94 billion) in 2023.

Previously, Surgutneftegas achieved an impressive net profit of 1.33 trillion rubles ($15.56 billion) in 2023, up sharply from 60.72 billion rubles ($719 million) in 2022.

Surgutneftegas operates in Russia's three main oil and gas provinces: West Siberia, East Siberia and Timan-Pechora. The company's sharp decline in profits reflects the challenges facing the Russian oil and gas industry amid the current complex economic and geopolitical situation.