Gazprom in Q2 2026: revenue up 14.8%, profit up 63.9% on the back of oil business growth

On August 28, 2026, Gazprom released its consolidated financial statements for Q2 2026. Revenue grew 14.8% year-on-year to RUB 2,502,777 million, EBITDA rose 35.4% to RUB 921,988 million, and net profit increased 63.9% to RUB 557,229 million. This review examines what drove the growth and what risks remain.

Key takeaways

— Revenue in Q2 2026 grew 14.8% year-on-year to RUB 2,502,777 million, driven by the oil business

— EBITDA in Q2 2026 increased 35.4% year-on-year to RUB 921,988 million, with EBITDA margin expanding from 31.2% to 36.8%

— Net profit in Q2 2026 rose 63.9% year-on-year to RUB 557,229 million, with net margin up from 15.6% to 22.3%

— Operating cash flow in Q2 2026 declined to RUB 437,977 million from RUB 492,896 million a year earlier

— Net debt as of June 30, 2026 stood at RUB 7,953,991 million, up RUB 213.1 billion quarter-on-quarter

— EV/EBITDA LTM multiple was 2.69 versus the three-year average of 3.40, indicating a discount to its own history

— No dividends were paid over the last 12 months; the model estimates the next payout at RUB 0.0 per share

Key figures, RUB bn

Revenue in Q2 2026 grew 14.8% year-on-year to RUB 2,502,777 million, driven by the oil business

In Q2 2026, Gazprom's revenue amounted to RUB 2,502,777 million, up 14.8% year-on-year. The main contribution came from the oil business: revenue from sales of crude oil, gas condensate, and oil and gas processing products increased from RUB 1,082,023 million to RUB 1,367,464 million, or 26.4%.

Revenue from gas sales increased from RUB 752,767 million to RUB 779,897 million (+3.6%), while revenue from electricity and heat sales rose from RUB 135,612 million to RUB 155,331 million (+14.5%). Thus, growth was primarily driven by oil revenues, while gas revenue grew more modestly.

EBITDA in Q2 2026 increased 35.4% year-on-year to RUB 921,988 million, with EBITDA margin expanding from 31.2% to 36.8%

EBITDA in Q2 2026 amounted to RUB 921,988 million versus RUB 681,177 million a year earlier. EBITDA margin increased from 31.2% to 36.8%. Operating profit rose from RUB 344,395 million to RUB 585,206 million, indicating a significant improvement in operational efficiency.

Operating expenses increased from RUB 1,847,763 million to RUB 1,908,952 million, or only 3.3%, while revenue grew 14.8%. This drove the margin expansion.

Net profit in Q2 2026 rose 63.9% year-on-year to RUB 557,229 million, with net margin up from 15.6% to 22.3%

Net profit in Q2 2026 reached RUB 557,229 million versus RUB 340,073 million a year earlier. Net margin increased from 15.6% to 22.3%. Profit before tax rose from RUB 460,304 million to RUB 714,761 million, while income tax expenses increased from RUB 120,231 million to RUB 157,532 million.

Finance income decreased from RUB 201,125 million to RUB 187,286 million, while finance costs declined from RUB 133,354 million to RUB 98,717 million, also supporting net profit.

Operating cash flow in Q2 2026 declined to RUB 437,977 million from RUB 492,896 million a year earlier

Operating cash flow in Q2 2026 amounted to RUB 437,977 million versus RUB 492,896 million in Q2 2025. The 11.1% decline occurred despite profit growth, indicating an increase in working capital outflows or other non-profit items.

For H1 2026, operating cash flow increased from RUB 1,437,578 million to RUB 1,465,219 million, or 1.9%. Capital expenditures for the half-year totaled RUB 1,301,842 million, slightly below RUB 1,349,624 million in H1 2025.

Net debt as of June 30, 2026 stood at RUB 7,953,991 million, up RUB 213.1 billion quarter-on-quarter

Net debt as of June 30, 2026 stood at RUB 7,953,991 million, up RUB 213.1 billion from March 31, 2026 (RUB 7,740,931 million). Over the last 12 months, net debt increased by RUB 401.9 billion.

The net debt to EBITDA ratio for the last 12 months was 2.15. The increase in debt while EBITDA remains at a high level suggests the company continues to raise borrowings, likely to finance capital expenditures.

EV/EBITDA LTM multiple was 2.69 versus the three-year average of 3.40, indicating a discount to its own history

Gazprom's market capitalization stands at RUB 1,996,150.6 million, and EV/EBITDA LTM is 2.69. This is notably below the three-year average of 3.40, indicating a valuation at a discount to its own history.

P/E LTM is 1.60, reflecting high profitability relative to low capitalization. ROE is 11.4%.

No dividends were paid over the last 12 months; the model estimates the next payout at RUB 0.0 per share

Gazprom has not paid dividends over the last 12 months. The model estimates the next payout at RUB 0.0 per share, implying a zero payout ratio from profit.

With a fair yield of 12.0%, the absence of dividends makes the share less attractive for income-oriented investors. The dividend policy remains a key question for valuation.

Valuation on the latest reported figures

Bottom line

Gazprom delivered strong results for Q2 2026: revenue grew 14.8%, EBITDA 35.4%, and net profit 63.9%. The main driver was the oil business, while gas revenue rose only 3.6%. Operational efficiency improved, with EBITDA margin expanding to 36.8%. However, operating cash flow declined, and net debt continues to rise, indicating increasing leverage. At the same time, valuation remains attractive: EV/EBITDA LTM is 2.69 versus the three-year average of 3.40. The key question for shareholders is when the company will resume dividend payments.