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We had our dip and up we go again
UPDATE 1-Big Oil saves Putin's top investor show, again
09:14 (15/06) - Bron: RTRS
(Updating time element)
By Dmitry Zhdannikov and Katya Golubkova
MOSCOW/LONDON, June 14 (Reuters) - Some of the world's most
powerful oil executives will attend Russia's top investment show
this week, once again helping the organisers shrug off a meagre
turnout from other leading Western industrialists and bankers.
Many CEOs and chairmen from major U.S. and European firms
withdrew from last year's St Petersburg International Economic
Forum because of tensions tied to Russia's annexation of Crimea
and a separatist war in eastern Ukraine.
The political environment has calmed and a shaky ceasefire
holds in Ukraine, but Western sanctions remain in place and most
Western business chiefs have again decided to skip what used to
be a key event in the international corporate calendar.
However, for the second year running, oil executives are
showing up regardless, with the heads of BP BP.L , Royal Dutch
Shell RDSa.L and Total TOTF.PA flying into the home town of
President Vladimir Putin.
BP's review of world energy supplies, published this month,
estimated that Russian oil and gas reserves had jumped above 100
billion barrels for the first time, climbing to some 103 billion
from 93 billion in the last review in 2013. This put it sixth in
the global reserves league table.
Such an abundance makes it economically vital for major
energy firms to maintain healthy ties with Moscow.
"Uncertainty is the rule of the game in this industry," the
head of France's Total Patrick Pouyanne said this month. "We are
in the long-term business. This is why at Total we are keen to
maintain our commitment to Russia."
Pouyanne and BP's boss Bob Dudley will be speaking at a
panel with Putin's energy tsar, the head of Rosneft
Igor Sechin. Shell's CEO Ben Van Beurden will share the stage on
Thursday with the head of Gazprom Alexei Miller.
All of them will likely have a separate meeting with Putin
and will generally be much more visible than last year when they
preferred to stay on the sidelines, fresh from the shock of a
steep deterioration in relations between Russia and the West.
"Things have calmed down a lot since last year and people
feel a bit more conformable. Crimea and the fighting in Ukraine
are pretty much gone from the front pages," said a source from a
major Western energy firm attending this year's forum.
Many Kremlinologists have repeatedly predicted that Putin's
strategy in Ukraine will be to wear down Western leaders, some
of whom, such as U.S. President Barack Obama, will be leaving
office within a couple of years.
LOOMING DEALS
Cooperation with oil majors will no doubt grab the headlines
on state Russian television as it helps the Kremlin convey a
message to the nation that it is business as usual for the
economy despite the jolts it suffered this past year from a
collapse in oil prices and the rouble.
Western energy bosses have a lot at stake in Russia, with
assets ranging from Shell's giant gas plant on the far eastern
island of Sakhalin to BP's 20 percent stake in Rosneft,
responsible for a third of its global production.
"I would observe that Russian (energy) imports may not be as
uncertain as they can appear," Dudley said this month when
speaking about Europe's desire to cut dependence on Russian gas.
"As well as Europe needing gas from Russia, Russia needs
revenues from Europe".
The last year's sanctions have prevented Western companies
from investing in the Russian Arctic, offshore and tight oil
projects as well as from providing funding for over 90 days.
But onshore developments are still allowed and BP is looking
to expand its portfolio in Russia by buying a stake in an east
Siberian oil field from Rosneft for as much as $800 million.
Shell's van Beurden said this month the company would be
keen to boost capacity of the $20 billion Sakhalin plant by a
third while Total is seeking ways to unlock investments into the
$30 billion Yamal gas plant.
"It is fair to say Russia likes getting deals done during
the forum," a source from one of the majors said when asked if
his company could finalise an accord in St Petersburg.
Executives from giant oil trading houses Glencore GLEN.L ,
Vitol, Gunvor and Trafigura will also travel to Russia as
Rosneft is looking for ways to boost its funding options via oil
sales deals.
Last year, Putin challenged the Western sanctions by
striking a long awaited gas supply deal just before the forum
between Kremlin's energy champion Gazprom and China,
valued at $400 billion
The PetroYuan Is Born: Gazprom Now Settling All Crude Sales To China In Renminbi
http://www.zerohedge.com/news/2015-06-0 ... a-renminbi
0
$5.17 We're going to open higher
Gazprom Raises 2015 Natural Gas Export Forecast
Date : 06/09/2015 @ 5:33AM
Source : Dow Jones News
Stock : Gazprom Oao (PC) (OGZPY)
Quote : 5.05 0.07 (1.41%) @ 4:15PM
Gazprom Oao (PC) (USOTC:OGZPY)
Today : Tuesday 9 June 2015
MOSCOW-Russia's gas monopoly Gazprom increased slightly its 2015 gas export forecast to up to 155 billion cubic meters, Gazprom's chairman Alexander Medvedev said Tuesday.
Previously, Gazprom expected to export up to 153 billion of cubic meters of natural gas outside the Commonwealth of Independent States this year.
Speaking at a press conference, Mr. Medvedev said he expects export gas prices to average $240 to $245 per 1,000 cubic meters.
Mr. Medvedev confirmed plans to halt exports through Ukraine after 2019, saying that Turkish gas pipeline is set to be the only channel for gas exports to Europe. Europe will be able to buy as much gas from Russia as it wants, he said. Less
Europe to face gas deficit of 50 bln cubic meters in 2025 — Gazprom
Economy June 09, 11:52 UTC+3
Gazprom will stop gas transit through Ukraine to Europe after 2019
http://tass.ru/en/economy/799672
Below $5 ouch!
Gazprom to Take Over Iranian-Armenian Pipeline
June 4, 2015 - 8:57am, by Giorgi Lomsadze Tamada Tales Armenia Energy Armenia Russia Iran
Giving away perhaps the last opportunity for energy independence, Armenia plans to sell its 41-kilometer-long section of an Iranian natural-gas export pipeline to Russian energy leviathan, Gazprom. The decision leaves Moscow in full control of natural-gas supply routes to Armenia.
Armenia Energy Minister Ara Simonian assured Radio Free Europe/Radio Liberty, however, that the terms of a state license will not allow Gazprom Armenia to mess with imports from Iran.
Those imports, though, are just a quarter of the annual 2 billion cubic meters Armenia receives from Russia, its economic and security patron.
Originally, many observers abroad and in Armenia alike had hoped that the Iranian-Armenia pipeline, completed in 2008, would wean Armenia off energy dependence on Russia.
Moscow is believed to use its position as Armenia’s economic, energy and security patron to ensure the country’s fealty – a situation that does not necessarily make it tolerant toward market-competitors.
Moscow first tried to set a limit to the Iranian-Armenian pipeline’s diameter and, hence, its supply capacity. Then, Gazprom muscled its way into taking over domestic distribution and, now, all import infrastructure.
Commenting on the takeover of the Iranian pipeline, Gazprom Armenia, Gazprom’s local distribution monopoly, said that it only made business sense to let one company operate the country’s supply-and-distribution infrastructure.
The company’s spokesperson told RFE/RL’s Armenian service that a “tentative agreement” on such a handover has existed since 2007. A $30-million “prepayment” already has been made, she said.
Ironically, a year ago, EurasiaNet.org reported, Yerevan indicated it intended to increase its Iranian imports to 2 bcm.
At the time, Moscow had remained strangely silent.
Now, it seems, the reason why is plain.
Gazprom pursues Russian shale boom ambitions amid U.S. sanctions
OAO Gazprom Neft, the oil arm of Russia’s state-run gas exporter, said commercial production from its Bazhenov shale formations could start in three years amid U.S. sanctions limiting the transfer of fracking technology.
http://fuelfix.com/files/2014/03/Par7825172.jpg
Don't know
China has started the construction of its part of the Power of Siberia gas pipeline; the welding of the first pipe joint is scheduled for the end of June.
Read more: http://sputniknews.com/business/20150602/1022844201.html#ixzz3buHXzY12
Gazprom neft is a sub from Gazprom
The other one is just another oil company
We need to be patient...
Yet low volume.. should reverse, it's been several red days in a row
Looks aweful. Broke support!
Looks aweful. Broke support!
Don't get me wrong so do I :)
It's weighing on the price
It's weighing on the price
It's weighing on the price
5/27/2015 Citigroup Inc. Reiterated Rating Buy
A number of other analysts have also recently weighed in on OGZPY. Analysts at Standpoint Research downgraded shares of Gazprom OAO from a buy rating to a hold rating in a research note on Thursday, April 9th. Analysts at Goldman Sachs upgraded shares of Gazprom OAO from a neutral rating to a buy rating in a research note on Friday, March 27th. Finally, analysts at Deutsche Bank downgraded shares of Gazprom OAO from a buy rating to a hold rating in a research note on Thursday, March 19th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and two have given a buy rating to the stock. The company currently has a consensus rating of Hold and an average target price of $7.50.
Shares of Gazprom OAO (OTCMKTS:OGZPY) traded down 0.63% on Wednesday, hitting $5.66. The stock had a trading volume of 340,941 shares. Gazprom OAO has a 52-week low of $3.60 and a 52-week high of $9.08. The stock’s 50-day moving average is $5. and its 200-day moving average is $5..
yes of couse! ;)
Slowly but surely going higher...:)
Yes Mick, the transparency of Gazprom reporting and disclosures is at least as good, if not better, than that of its best U.S. peers.
2014 dividends of RUB 7.20 per share proposed by Board of Directors
May 15, 2015, 09:55
The Gazprom Board of Directors addressed the issues associated with arranging and holding the Company's annual General Shareholders Meeting.
The Board resolved to convene the annual General Shareholders Meeting of Gazprom at 10:00 am (local time) on June 26, 2015 at the Company's headquarters in Moscow. Registration of the Meeting participants is to be carried out on June 24 (from 10:00 am to 5:00 pm) and on June 26 (from 9:00 am).
The Board of Directors approved Gazprom's annual General Shareholders Meeting agenda consisting of the following items:
approval of the Company's Annual Report;
approval of the Company's annual Accounting Statements, including the financial results;
approval of the distribution of the Company's profit based on the results of 2014;
on the amount, terms and form of the dividend payout based on the results of 2014 as well as on the date when a list of persons entitled to receive dividends is drawn up;
approval of the Company's Auditor;
on the remuneration for the Board of Directors (Supervisory Council) Members – non-government officials in the amount prescribed by the Company's regulatory documents;
on the remuneration for the Audit Commission Members- non-government officials in the amount prescribed by the Company's regulatory documents;
on the approval of the Company's updated Articles of Association;
on the ratification of transactions of corporate interest, to be potentially executed by Gazprom while carrying on its usual business;
election of the Board of Directors Members;
election of the Audit Commission Members.
The Board of Directors formed the Shareholders Meeting Presidium to be made up of the Company's Board Members and approved the Board Chairman Viktor Zubkov as the Shareholders Meeting Chairman.
The Board meeting took the decision to provisionally endorse the Company's 2014 Annual Report and 2014 Annual Accounting Statements of Gazprom (parent company) prepared in accordance with the Russian law.
The Board recommended that the Shareholders Meeting approve the allocation of Gazprom's net profit based on the 2014 operating results.
The Board recommended that the Shareholders Meeting approve the proposal to pay out RUB 7.20 per share in annual dividends based on Gazprom's operating results in 2014 (on last year's level). In this way, the dividends will make up 90.2 per cent of Gazprom's (parent company) net profit generated in 2014 under RAS. The Board recommended that the Shareholders Meeting approve the deadline for listing the shareholders entitled to receive dividends – July 16, 2015. The recommended deadline to receive dividends for registered shareholders and their trustees, stock professionals listed in the Register of Shareholders – July 30, 2015; for the rest of registered shareholders – August 20, 2015.
The meeting endorsed the proposals on the amount of the remuneration for the Board of Directors and the Audit Commission Members.
The Board of Directors reviewed the results of the open tender for the selection of an auditing company responsible for performing statutory annual audit of Gazprom and nominated the tender winner – FBK to be approved by the General Shareholders Meeting of Gazprom as the Company's Auditor.
The Board of Directors approved and submitted to the Shareholders Meeting for consideration a new draft of the Articles of Association. The amended document reflected the modifications introduced into the Civil Code of the Russian Federation and the Federal Law on Joint Stock Companies.
In addition, the Board of Directors adopted decisions on other issues associated with arranging and holding the annual General Shareholders Meeting of Gazprom.
At present, the number of the Company's shareholders accounts for several hundred thousand Russian and non-Russian residents. Therefore, shareholders are advised to exercise the right to take part in the Meeting via their trustees by proxy or via a filled out voting ballot sent to Gazprom.
Do you see the large orders today?
15,000
25,000
30,000
40,000
Pm 08:31 $ 6.1755 High volume 13,114
london $6.18
Xetra €5.51
Gazprom’s Undervalued Potential
Gazprom holds the world’s largest natural gas reserves, which make up 18 percent of global reserves. The company accounts for 14 percent of global gas output and 74 percent of Russian gas output, and it also owns the world’s largest gas transmission network. According to the 2014 Fortune 500 ranking Gazprom is the 17th biggest company in the world, based on revenues.
Gazprom’s share price has been suffering over the last few years. It peaked in 2008 at around $30, and then fell precipitously to around $6.50 during the financial crisis. After such, it started to recover and climbed back to around $16.80 in April 2011, but then it started to decline and has been grinding lower ever since. The current share price is around $6, which is lower than it was at the bottom of 2008.
The Financial Factors
Based on traditional valuation ratios Gazprom appears cheap. Over the last few years it has been trading at a price/earnings ratio between 2-3. Currently, however, the ratio is around 22 because net profits fell approximately 86% in 2014. Non-cash items related to Ruble depreciation in 2014 heavily impaired net profit, however they did not damage free cash flow, which actually increased year over year.
The price/book ratio currently stands at around 0.4 and has been trading around 0.3-0.4 for the last two years. Price-to-sales is currently 0.6 and price-to-free cash flow is around 6.
Gazprom’s revenues have been growing at a compound annual growth rate of around 12.3 percent for the last 8 years. From 2006 to 2013 net profit grew at a compound annual growth rate of about 9.5 percent, however as mentioned above, profits fell substantially in 2014. Return on equity has consistently been above 12 percent since 2006, however in 2014 it dropped to 1.66 percent.
From a balance sheet perspective the company is strong. The debt/equity ratio is 0.23 and has hovered between 0.13 and 0.25 for the last eight years. The current ratio is approaching 1.9 and has generally stayed above 1.5 for the last eight years, which is a good level. Both from a short and long-term financing perspective, Gazprom appears a solid company.
Moreover, the dividend yield of the company is currently 6.6 percent, compared to around 2.2 percent for the S&P 500. In other words, Gazprom is paying out 3 times as much in dividends as the average S&P 500 company.
Lastly, according to Gazprom’s 2014 annual report, DeGolyer and MacNaughton, the Dallas based petroleum consulting company, performed an audit of Gazprom’s reserves and concluded that the present value of those reserves equated to USD 316.3 billion. Gazprom is trading at a 77.4 percent discount to the value of its estimated reserves. Even if the value of those reserves turns out to be half of what was reported, the company would still be trading at less than 50 percent of the value of its reserves.
The Qualitative Factors
One of the primary concerns for foreign investors looking to invest in Russia is corruption. There has been talk of members of the Gazprom management siphoning off money to themselves, which hampers investor sentiment and is of concern. However, Gazprom has improved considerably over the past 15 years. Before Putin took Gazprom under his wing in 200,0 the Chair of the company, Viktor Chernomyrdin, had stripped the company of many assets and sold it to family and friends of the board. However, after he was ousted in 2000 the company began its transformation and Alexei Miller was named CEO, and remains in that position to this day. The looting ended and Gazprom started to regain its strength.
One can debate if the company is still corrupt, however Gazprom is an important part of Putin’s plan to strengthen Russia’s position on the world stage and from his past actions Putin seems to understand that if Gazprom is to remain strong it cannot have board members selling off valuable assets to family and friends at a discount.
The Macro Picture
It’s impossible to talk about Gazprom without mentioning natural gas prices and the future of Russia. Oil is the essential fuel of the modern economy, but natural gas also plays an integral part. There will therefore be demand for Gazprom’s product in the years and decades to come, no matter what the price is. The long-term prospects of the company are therefore favorable.
In terms of geopolitics, investing in Russia is obviously more risky than investing in developed economies. However, people tend to overlook Russia’s financial position is less shaky than one would assume. Debt/GDP is only around 13 percent, compared to around 100 percent in the US. The country has adequate foreign reserves, despite using some lately to prop up the Ruble. The country also has vast natural resource reserves and has economic and geopolitical ties with China, Brazil, India and Iran. There is no doubt Russia has been suffering lately, but anyone who cares to look a little closer can see that the country is doing better than our own preconceived notions.
Conclusion
Gazprom has been experiencing troubles lately due to the geopolitical and macro economic factors surrounding the company. However, on a long term basis the future appears bright, due to the importance of natural gas in the world economy. From a valuation perspective Gazprom looks undervalued and investors that are comfortable with the risk of investing in Russia, and the oil and gas sector, might see this as a good buying opportunity
Merkel and Putin making a deal?
Putin says Ukraine peace 'moving forward' despite problems
Russian President Vladimir Putin said after talks with German Chancellor Angela Merkel on Sunday that the peace process in eastern Ukraine was progressing despite difficulties.
Merkel reaffirmed her support for the peace efforts and repeated her calls to Putin to use his influence with pro-Russian separatists battling Kiev government forces to end a conflict in which more than 6,000 people have been killed since April 2014.
"There is every reason to believe the Minsk process is moving forward, though with problems," Putin told a joint news conference with Merkel, referring to the peace deal signed in February in the Belarussian capital.
"With all the problems in east Ukraine, it has nevertheless become quieter," he said, adding that direct dialogue between the Kiev government and the separatists was crucial for peace.
Relations between Russia and Germany, which have multi-billion-dollar trade and energy links, have soured sharply over Moscow's annexation of Ukraine's Crimean region and its support for the separatists. Berlin has strongly backed the Western economic sanctions subsequently slapped on Russia.
"But still, the lesson of history is that we have to try everything to solve conflicts - as difficult as they might seem - peacefully and in dialogue and that means diplomatically," Merkel said.
The Western Route... This is a big contract imo
Gazprom and CNPC sign heads of agreement for gas supply via western route Monday, May 11, 2015
The Gazprom Management Committee Chairman Alexey Miller and the CNPC Vice President Wang Dongjin signed today in Moscow the Heads of Agreement for pipeline gas supply from Russia to China via the western route. Inked in the presence of Russian President Vladimir Putin and Chinese President Xi Jinping, the document outlines the main technical and commercial parameters of the future supplies.
In addition, Alexey Miller and Wang Dongjin signed today another Agreement of Strategic Cooperation (previous ten-year Agreement had expired in 2014) outlining the main areas of joint actions in the gas sector.
“The western route will provide access to the vast resources of Western Siberia for the Chinese market. The resource base is available. Gazprom will be able to start supplies upon completion of the gas pipeline.
In the meantime, the western route will not affect the Power of Siberia project. The intergovernmental agreement on the eastern route is ratified. Gazprom will fulfill its obligations right on time,” said Alexey Miller.
The Western Route... This is a big contract imo
Gazprom and CNPC sign heads of agreement for gas supply via western route Monday, May 11, 2015
The Gazprom Management Committee Chairman Alexey Miller and the CNPC Vice President Wang Dongjin signed today in Moscow the Heads of Agreement for pipeline gas supply from Russia to China via the western route. Inked in the presence of Russian President Vladimir Putin and Chinese President Xi Jinping, the document outlines the main technical and commercial parameters of the future supplies.
In addition, Alexey Miller and Wang Dongjin signed today another Agreement of Strategic Cooperation (previous ten-year Agreement had expired in 2014) outlining the main areas of joint actions in the gas sector.
“The western route will provide access to the vast resources of Western Siberia for the Chinese market. The resource base is available. Gazprom will be able to start supplies upon completion of the gas pipeline.
In the meantime, the western route will not affect the Power of Siberia project. The intergovernmental agreement on the eastern route is ratified. Gazprom will fulfill its obligations right on time,” said Alexey Miller.
Did you notice the large trades that went through last Friday?
Gazprom reaches pipeline deal with Turkey
14 minutes ago
Gazprom has reached a deal with Ankara for the "Turkish Stream" pipeline to start operation by December 2016, the Russian gas giant said on Thursday.
Turkish Stream was proposed in December after Russian president Vladimir Putin scrapped the contentious "South Stream" pipeline project, which would have circumvented Ukraine to deliver Russian gas to Southern Europe across the Black Sea but ran into opposition from the European Commission, reports Jack Farchy in Moscow.
Since then, Gazprom has been negotiating with the Turkish government and state energy company Botas to build the alternative Turkish Stream, following much the same route as South Stream but landing in Turkey rather than Bulgaria. Ankara has dragged out the negotiations in hopes of securing a hefty price discount on Russian gas, according to people close to Gazprom.
On a visit to Ankara on Thursday Alexei Miller, chief executive of Gazprom, said that the two sides had reached an agreement.
He said:
An agreement was reached on the start of operation and deliveries of gas through Turkish Stream in December 2016. Gazprom will use the agreements reached today as the basis for its work schedule on the Turkish Stream project.
Mr Miller did not mention any renegotiation of gas prices for Turkey. Taner Yildiz, the Turkish energy minister, in March said that the two sides had agreed a 10.25 per cent discount.
Turkey is Gazprom's second-largest market after Germany by sales, and one of its most prospective growth markets. Mr Miller said that Gazprom's deliveries of gas to Turkey through the Blue Stream pipeline under the Black Sea had risen 4 per cent in the first four months of the year from the same period a year earlier.
Below Alexey Miller, the chairman of Gazprom, and Taner Yildiz, Turkey's energy minister, examine the possible route for the pipeline.
Gazprom to cut gas prices for private Turkish companies
http://www.hurriyetdailynews.com/gazprom-to-cut-gas-prices-for-private-turkish-companies.aspx?pageID=238&nID=82027&NewsCatID=348
Ok good thank you for the clarification.
One trade of +700,000 shares is no small change...curious why
Pre-Market $ 6.1718 High
Share Volume 748,750
Going ex divi tomorrow I suspect the price to go down
We are breaking out ??
We are breaking out ??
Gazprom is likely to keep its credit rating at the current BBB- level whatever the results of an EU Competition Commission investigation may be, Fitch Rating Agency said Tuesday.
Read more: http://sputniknews.com/business/2015042 ... z3Ybuptlex
Gazprom is likely to keep its credit rating at the current BBB- level whatever the results of an EU Competition Commission investigation may be, Fitch Rating Agency said Tuesday.
Read more: http://sputniknews.com/business/2015042 ... z3Ybuptlex
ALMOST THREE MILLION BARRELS OF ARCTIC OIL DELIVERED TO NORTH-WEST EUROPE
The Kirill Lavrov tanker has delivered a new batch of ARCO arctic oil to Europe in its sixth shipment of oil. More than 2.9 million barrels of oil have been extracted from the Prirazlomnoye oil field since production began.
http://www.gazprom-neft.com/press-center/new
Are you holding longterm? I am...