Gazprom: Rising oil prices will not affect electricity prices

For those with Gazprom, Christmas came earlier this year. The cold over all of Europe caused the demand for temperatures to rise significantly more than in previous years. Russia’s powerful government has benefited from rising gas prices – a major export and exporters of about half of its products. However, while export prices continue to rise, Gazprom shares are declining. This shows that investors do not believe gas prices can rise sharply.

Employees at Gazprom probably feeling unappreciated. Although Russia supplies Europe 41 percent of its natural gas exports, the EU’s determination to stop producing oil means that its products are considered toxic. Political disputes with the US and the EU over the use of its recent Nord Stream 2 pipeline saline. His treatment is required at the same time as humiliation. However, despite Gazprom’s search for new markets, including China, Europe is still a major source of stable capital.

Prejudice has helped the company in the winter. Gas prices in Europe have risen as a result of limited storage and a surprisingly cold climate. In the UK, a well-represented European commodity, the average gas price exceeded $ 40 per million British oil in October.

However, Gazprom continues to face challenges, with accusations of banning the export of European customers such as Germany and Italy – allegations of denial.

To be honest the company, it had household chores to deal with. In October, when European tensions over electricity prices soared, a gas producer was filling up his storehouse. It could not produce much gas in Europe. This is what happens at that time of year.

Strong results for the third quarter which was released at the end of November gave a taste of the benefits it made in this regard. The nine-month earnings of Rbs1.55tn ($ 20.9bn) are more than the annual earnings in the company’s history. European oil prices remained high over the last year, meaning that Gazprom profits are expected to rise. Given its plan to give half the profits to investors, next year’s group yields should be close to 9 percent.

But after a 62 percent jump in the average price this year, Gazprom is trading three times lower than this year’s ebitda prices. It looks like Gazprom’s party gifts have already been purchased in its divisions.