Russia’s 4th Largest Oil Company Goes Negative, Reporting Deep Losses for Q1 2025

One of Russia’s most secretive and politically significant oil giants, Surgutneftegas, has reported a staggering net loss of 439.7 billion rubles in the first quarter of 2025—its worst result in decades. Once a symbol of stability and hidden wealth within the Kremlin’s orbit, the company’s reversal is now a warning sign of a deepening crisis across Russia’s energy sector.

For comparison, Surgut posted a profit of 268.5 billion rubles in Q1 2024. The new loss marks a dramatic year-on-year shift of more than 700 billion rubles, revealing how sanctions, shrinking global demand, and internal financial decay are hitting even the core of the Russian oil industry.

The company provided almost no detail in its financial disclosures. Revenue, balance sheet indicators, and cash positions—normally routine in quarterly filings—were conspicuously absent. The only other figure released was a pre-tax loss from continuing operations: 597.9 billion rubles, down from a 321.2 billion ruble profit a year earlier.

The lack of transparency has raised alarm among Russian analysts and investors, especially given Surgutneftegaz’s longstanding reputation as “Putin’s hidden wallet.” For years, the firm was known to maintain vast hard currency deposits—hidden reserves that could be tapped quietly for state-linked financial needs, including funding Kremlin priorities abroad or stabilizing the ruble.

At the end of Q4 2023, Surgutneftegaz reportedly held 5.9 trillion rubles in liquid assets. That number was quietly removed from reporting afterward. Since then, no updated data has been released—marking the first time in years that the company’s cash position has been fully classified. Analysts from Russian banks and investment firms estimate the figure was once as high as 6.5 trillion rubles, largely stored in foreign-currency accounts.

What makes these losses even more significant is Surgutneftegaz’s role in Russia’s overall oil production.

According to state-linked energy data, the company extracts a larger share of Russia’s total crude oil than any other firm—a fact often overshadowed by the visibility of Rosneft and Lukoil. In short, Surgutneftegaz is not peripheral; it sits at the very heart of Russia’s extractive economy.

The Q1 collapse also follows a disappointing full-year report for 2024, when net profit dropped 30.8% to 923.3 billion rubles, far below the 1.026 trillion expected by Interfax analysts. The company’s proposed dividend—just 8.5 rubles per preferred share and 0.9 per ordinary share—is likely to disappoint shareholders accustomed to richer payouts. The annual meeting on 27 June will be held remotely.

Surgutneftegaz’s deterioration is part of a broader trend. Russian oil revenues have declined sharply under the pressure of Western sanctions, enforced price caps, and the loss of European markets. Exports rerouted to Asia bring lower profits and higher costs. Domestic military spending, meanwhile, continues to climb, diverting funds from the civilian economy.