| Followers | 80 |
| Posts | 82226 |
| Boards Moderated | 2 |
| Alias Born | 12/26/2003 |
Saturday, September 21, 2013 1:20:40 AM
How Gazprom's $1 trillion dream has fallen apart
The company logo of Russian natural gas producer Gazprom is seen on an advertisement
in front of the White House in Moscow February 8, 2013. REUTERS/Maxim Shemetov
By Vladimir Soldatkin Fri, 28 Jun, 2013
MOSCOW (Reuters) - Zoya Danilina, who owns some 700 shares in Gazprom , says investors don't have to look far to understand that Russia's most powerful company has lost its way.
Danilina remembers when her shares were worth over 300 roubles each. Now they fetch about 100 roubles.
"There have been much better days, when tables were served with black and red caviar," she said on the sidelines of Gazprom's annual general meeting in Moscow on Friday, looking at a plate of boiled buckwheat, a popular staple food in Russia.
In the caviar era, Gazprom head Alexei Miller, a close ally of President Vladimir Putin, was overseeing a company with the world's third-largest market value at $360 billion. In 2007, he promised to boost it to $1 trillion.
Fast forward several years and Gazprom, still the world's largest gas producer and holder of 15 percent of global gas reserves, is worth $77 billion and could fall further as it faces a series of setbacks.
The biggest blow came from a shale gas revolution that has unlocked vast reserves in the United States.
U.S. prices have crashed, closing America as a prospective market for Gazprom, diverting cheaper liquefied natural gas (LNG) cargoes not needed in the United States to Europe, undermining Gazprom's position in its core market.
Europe, tied to Gazprom by a Soviet-built pipeline network, has balked at its contracts that tie gas prices to more expensive oil.
Last year, Miller was forced to offer billions of dollars in what Gazprom described as "rebates" to European buyers.
On Thursday, Germany's RWE said it won an arbitration case against Gazprom, which further loosened the price link to oil and raised the prospect of more price concessions.
Gazprom expects its 2013 earnings to fall by 10 percent, marking a second yearly decline.
The stock market now values Gazprom - the world's third-biggest company by earnings behind ExxonMobil and Apple - at only two times its 2012 earnings of $38 billion. That makes it the cheapest large-cap stock on an already cheap Russian market.
There's much more FOUR pages to be exact. Read it and you will see why the ONLY 'Country' anywhere that needs a pipeline would be Russia ... Gazprom is going down!.. Yeah find some courage and read it . .Then go up August 2013 and see IF Gazprom's situation has changed .. ;) .. uh no it hasn't ... getting worse all the time .... No wonder putin and assad the killers are such good friends ..! . ;)
http://ca.finance.yahoo.com/news/gazproms-1-trillion-dream-fallen-apart-181422124.html
oh and btw, just in case any of you conspiracy minded folks out there think .. "what IF ..?".. Well I'll tell what IF ..IF? well, ... We will simply do some more serious minded FRACKING and put everyone out of business ... ;) let's see we dropped gazprom down to number three from number one .. .. lolol ..... .. piece of cake ! ......;)
The company logo of Russian natural gas producer Gazprom is seen on an advertisement
in front of the White House in Moscow February 8, 2013. REUTERS/Maxim Shemetov
By Vladimir Soldatkin Fri, 28 Jun, 2013
MOSCOW (Reuters) - Zoya Danilina, who owns some 700 shares in Gazprom , says investors don't have to look far to understand that Russia's most powerful company has lost its way.
Danilina remembers when her shares were worth over 300 roubles each. Now they fetch about 100 roubles.
"There have been much better days, when tables were served with black and red caviar," she said on the sidelines of Gazprom's annual general meeting in Moscow on Friday, looking at a plate of boiled buckwheat, a popular staple food in Russia.
In the caviar era, Gazprom head Alexei Miller, a close ally of President Vladimir Putin, was overseeing a company with the world's third-largest market value at $360 billion. In 2007, he promised to boost it to $1 trillion.
Fast forward several years and Gazprom, still the world's largest gas producer and holder of 15 percent of global gas reserves, is worth $77 billion and could fall further as it faces a series of setbacks.
The biggest blow came from a shale gas revolution that has unlocked vast reserves in the United States.
U.S. prices have crashed, closing America as a prospective market for Gazprom, diverting cheaper liquefied natural gas (LNG) cargoes not needed in the United States to Europe, undermining Gazprom's position in its core market.
Europe, tied to Gazprom by a Soviet-built pipeline network, has balked at its contracts that tie gas prices to more expensive oil.
Last year, Miller was forced to offer billions of dollars in what Gazprom described as "rebates" to European buyers.
On Thursday, Germany's RWE said it won an arbitration case against Gazprom, which further loosened the price link to oil and raised the prospect of more price concessions.
Gazprom expects its 2013 earnings to fall by 10 percent, marking a second yearly decline.
The stock market now values Gazprom - the world's third-biggest company by earnings behind ExxonMobil and Apple - at only two times its 2012 earnings of $38 billion. That makes it the cheapest large-cap stock on an already cheap Russian market.
There's much more FOUR pages to be exact. Read it and you will see why the ONLY 'Country' anywhere that needs a pipeline would be Russia ... Gazprom is going down!.. Yeah find some courage and read it . .Then go up August 2013 and see IF Gazprom's situation has changed .. ;) .. uh no it hasn't ... getting worse all the time .... No wonder putin and assad the killers are such good friends ..! . ;)
http://ca.finance.yahoo.com/news/gazproms-1-trillion-dream-fallen-apart-181422124.html
oh and btw, just in case any of you conspiracy minded folks out there think .. "what IF ..?".. Well I'll tell what IF ..IF? well, ... We will simply do some more serious minded FRACKING and put everyone out of business ... ;) let's see we dropped gazprom down to number three from number one .. .. lolol ..... .. piece of cake ! ......;)
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
