Russia’s state-owned gas producer Gazprom is seen as one of the world’s top economists with a growing profitability that opens the way to pay for 2021 shares, and predicts tangible results to come.
The company recorded significant gains in the first nine months of the year due to rising gas prices, which are expected to increase profits in the last quarter of the year.
The company’s vice-chairman Famil Sadygov said Rbs1.55tn ($ 20bn) in the nine months to the end of September was “the highest in any year in the company’s history”.
“Given the current situation, we expect the best results in the fourth quarter,” he said.
Export prices for the company have already set a record high in rubles, and in the fourth quarter, they will invest heavily in dollars, according to Alexander Ivannikov, head of Gazprom’s finance department. “Rising gas prices are not a temporary thing,” he said.
Considering the amount of free $ 9bn in the first nine months of the year and a 50 percent interest rate, Gazprom said it would provide an annual share of Rbs29.71 per share, up from Rbs12.55 last year.
This will bring storms to the Kremlin, which accounts for 38 percent of the company and an additional 12 percent for the other two state-owned companies.
Gazprom, which oversees the export of gas to Russia, has benefited from rising oil prices in Europe, its largest export market. Although it has achieved what it has done but it has not increased sales in the local market, which contributes to the high prices due to the high demand for consumers in Asia.
Gas prices have risen for six consecutive quarters and prices for the third quarter average three times a year to $ 304 per 1,000 cubic meters, according to Gazprom.
Revenues from all gas sales in the first nine months rose 77 percent from the same period in 2020 to Rbs3.5tn. Sales in Europe and Turkey rose 117 percent to Rbs2.5tn. Prices have risen since then, and I hope for economic growth.
“Market conditions tell us that no matter what, depending on our expectations and estimates, next year’s average price will not be lower. . . this year, “said Andrey Zotov, deputy head of the Gazprom Export department.
Low-yield oil stored in Europe, including the Gazprom warehouse in Germany and Austria, has also contributed to rising prices.
Gazprom said it did not consider gas storage in European reserves as attractive because of storage prices, and it stopped raising volumes until the beginning of this month.
Shares at Gazprom rose 4 .76 percent at Rbs341.51 on Monday.
A report released Monday by the human rights group Global Witness shows the world’s largest gas companies, most of which are oil producers, also said the $ 65bn profit by the third quarter of 2021, up 24 percent from the same period in 2019.
“The unprofitable profits made by the richest gas companies show that, although we did not, the citizens are forced to pay for the electricity crisis,” said Jonathan Gant, a major gas campaigner at Global Witness.
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