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Foundational Study Shows Soft Suit Exoskeleton Improves Walking for Stroke Survivors
Study Examines Use of Restore™ System Developed by Harvard's Wyss Institute
MARLBOROUGH, Mass. and YOKNEAM ILIT, Israel, Aug. 2, 2017 /PRNewswire-USNewswire/ -- A new study published in the Journal of Science Translational Medicine finds that use of a soft suit exoskeleton system facilitates normal walking ability for ambulatory patients following a stroke. The paper, which is authored by researchers at Harvard University's Wyss Institute for Biologically Inspired Engineering and Boston University, is a seminal study, providing key findings that will propel additional research of how to improve mobility for patients following a stroke.
The prototype utilized in the study is a soft suit exoskeleton created by the Wyss Institute that is now moving towards commercialization by ReWalk Robotics Ltd. (Nasdaq: RWLK) ("ReWalk"). The study included 9 participants, and examined the immediate improvements in walking capability that could be obtained when wearing the Restore system. The study highlighted the potential for the technology to provide gait assistance and training during walking and concludes:
These improvements in paretic limb function contributed to a 20 +/- 4% reduction in forward propulsion interlimb asymmetry and a 10 +/- 3% reduction in the energy cost of walking, which is equivalent to a 32+/- 9% reduction in the metabolic burden associated with poststroke walking. Relatively low assistance (~12% of biological torques) delivered with a lightweight and nonrestrictive exosuit was sufficient to facilitate more normal walking in ambulatory individuals after stroke.
"This foundational study shows that soft wearable robots can have significant positive impact on gait functions in patients post-stroke, and it is the result of a translational-focused multidisciplinary team of engineers, designers, biomechanists, physical therapists and most importantly patients who volunteered for this study and gave valuable feedback that guided our research," said Wyss Core Faculty member Conor Walsh who is also the John L. Loeb Associate Professor of Engineering and Applied Sciences at SEAS and the Founder of the Harvard Biodesign Lab.
ReWalk is working with the Wyss Institute on the development of lightweight designs to complete clinical studies, pursue regulatory approvals and commercialize the systems on a global scale. The first commercial application will be for stroke survivors, followed by Multiple Sclerosis patients and then additional applications. There are an estimated 3 million stroke survivors with lower limb disability in the U.S.
"Exoskeletons are now a commercially available, disruptive technology that have changed the lives of many individuals in the paraplegic community," said ReWalk CEO Larry Jasinski. "The ongoing research at the Wyss Institute on soft exosuits adds a new dimension to exoskeletons that can potentially meet the needs of individuals that have had a stroke, as well as for those diagnosed with Multiple Sclerosis, Parkinson's disease or people who have limitations in walking. The Restore is a unique lightweight design that can assist and constantly adjust in real time to the user's needs on every step they take. The depth of this fundamental science is a meaningful element in applying research to the everyday needs of this patient community."
The Restore transmits power to key joints of the legs with cable technologies, powered with software and mechanics that are similar to the technologies used in the ReWalk exoskeleton system for individuals with spinal cord injury. The cables are connected to fabric-based designs that attach to the legs and foot, thus lending the name "soft suit."
The full article in the Journal of Science Translational Medicine can be downloaded here.
I took a small position... now I will wait.
ReWalk Robotics to Report Second Quarter 2017 Financial Results on August 3, 2017
By GlobeNewswire, July 20, 2017, 08:00:00 AM EDT
Vote upAAA
MARLBOROUGH, Mass. and YOKNEAM ILIT, Israel, July 20, 2017 (GLOBE NEWSWIRE) -- ReWalk Robotics Ltd. (Nasdaq:RWLK), a leading manufacturer of exoskeleton systems, will release its second quarter 2017 financial results on Thursday, August 3, 2017, before the U.S. financial markets open.
Russia's Gazprom returns to forecast-beating profit in Q3
January 19, 2017, 02:13:00 AM EDT By Reuters
http://www.nasdaq.com/article/russias-gazprom-returns-to-forecastbeating-profit-in-q3-20170119-00096#ixzz4WCWPgI63
Quarterly results looking good
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/OGZD/13100582.html
Hi, I used to know someone from the Dynegy msg board with the same ID. Gatherings in Houston etc...
Just curious.... Are you the same person?
Cheers!
Exciting times ahead of us. Will we finally get results and will they be positive that's the question.
Would Love to see the PPS cross $1 before results.
Fingers crossed.
Cheers!
Russian stockmarket is bargain of the century
http://www.cnbc.com/2016/04/15/templetons-mark-mobius-russian-stock-market-is-bargain-of-the-century.html
RUB 7.40 per share dividends proposed by Management Committee for 2015
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/OGZD/12776076.html
That's good news.
Good news!
Gazprom and Fluxys discuss promising areas of cooperation
As part of the 5th St. Petersburg International Gas Forum, a working meeting took place today between Alexey Miller, Chairman of the Gazprom Management Committee and Walter Peeraer, Chief Executive Officer of Fluxys.
The meeting participants considered possible areas of the bilateral cooperation, including Russian gas transit via Belgium.
The parties also addressed the prospects for constructing new and direct gas transmission routes to Europe.
Background
Belgian gas transmission company Fluxys owns a network of transnational gas pipelines in Northwestern Europe with an annual throughput capacity of 82 billion cubic meters. The company also deals with natural gas and LNG transit and storage.
Fluxys provides Gazprom with gas transmission capacities to supply gas to the UK.
Winter is coming..
Gazprom has no plans to reduce the volume of gas supplies to Europe as it happened last year, Gazprom Deputy Chairman Alexander Medvedev said Wednesday.
"It has nothing to do with last year. We cannot compare the two. Export volumes are significantly higher — 159-160 bln cubic meters against 146.3 bln cubic meters," Medvedev said.
As TASS reported earlier, in early autumn of 2014 Slovak gas company SPP, Polish PGNiG and the German E.ON registered a decline in supplies from Russia. SPP, in particular, reported a reduction of supplies from around 10% in September to 50% in early October.
Also in September 2014, Romanian Energy Minister Razvan Nicolescu said that gas deliveries from Russia to Romania decreased by 5%. At the same time Austrian OMV reported a minor reduction in gas supplies from Russia — 15%. A decline of around 10% in supplies of Russian gas was registered in Italy.
Gazprom proposes out-of-court settlement on EU antitrust case -Interfax
MOSCOW, Sept 21 (Reuters) - Russia's top natural gas producer Gazprom has sent proposals to the European Commission regarding an out-of-court settlement of an antitrust case against the company, Interfax news agency quoted a Gazprom official as saying on Monday.
After more than two years of investigation, EU antitrust regulators charged the Russian gas giant in April with abusing its dominant position in Poland, Hungary, and six other countries in Eastern Europe, to overcharge by up to 40 percent.
State-run Gazprom, which supplies a third of EU gas needs and generates more than half its revenues there, has denied the charges and said it has already made significant concessions.
However, it also said in May that it would consider offering Europe new concessions, including on pricing, to settle the antitrust case, and thereby avoid a long legal battle which could result in billions of dollars in fines.
Interfax did not say what was in the proposals but quoted Alexander Medvedev, Gazprom's deputy chief executive officer, as saying on Monday that Gazprom would soon set up a meeting with EU antitrust chief Margrethe Vestager, the news agency reported.
Gazprom has to submit a written response, or statement of objections, by Sept. 28 to the claims by the European Commission.
"We sent our proposals about the settlement of the claims, which were formally lodged to Gazprom," Interfax quoted Medvedev as saying.
"In the nearest future, we will discuss it with Mrs Vestager in order to find an out-of-court solution," he added.
Medvedev also said that Gazprom would send its statement of objections on Sept. 28 as he did not expect to resolve the issue by that date.
Think the fat lady is singing :)
I agree with you the reforms first begun by former Soviet leader Mikhail Gorbachev in 1985...
Let me congratulate you and your gang on your winnings. Fab gains!
And secondly, I am not Russian...
Gazprom Banks on China
WSJ / 4 hours ago
HONG KONG—Gazprom’s finance chief expects a major gas-supply deal the Russian company struck with China last year to be profitable despite the current slump in global energy prices. In an interview with The Wall Street Journal, Gazprom Chief Financial Officer Andrey Kruglov said the company views the current fall in oil prices as part of a...
Unfortunately I don't have access to the WSJ that published this article. Probably worth the read...
I agree with you to a certain point...
There’s not a lot to like about Vladimir Putin: he’s autocratic, vain and runs a corrupt government. And he doesn’t give a fig for human rights. The repression in Chechnya, the jailing of the businessman Mikhail Khodorkovsky and the Pussy Riot protestors, the murders of journalist Anna Politkovskaya and of Alexander Litvinenko, the former spy – all this happened on Putin’s watch. Who would not be on the side of the 100,000 people who turned out on Moscow’s streets last winter to protest against Putin’s election to a third term as president and to demand fair elections and an honest government? Russia would be better off without Putin – who would argue otherwise?
As a There’s not a lot to like about Vladimir Putin: he’s autocratic, vain and runs a corrupt government. And he doesn’t give a fig for human rights. The repression in Chechnya, the jailing of the businessman Mikhail Khodorkovsky and the Pussy Riot protestors, the murders of journalist Anna Politkovskaya and of Alexander Litvinenko, the former spy – all this happened on Putin’s watch. Who would not be on the side of the 100,000 people who turned out on Moscow’s streets last winter to protest against Putin’s election to a third term as president and to demand fair elections and an honest government? Russia would be better off without Putin – who would argue otherwise?
As a matter of fact, millions would. Talk to many Russians and they’ll tell you that life under Putin is vastly better than under Boris Yeltsin. Yeltsin let a handful of oligarchs hoover up Russia’s wealth while ordinary Russians were reduced to selling their possessions on the street. Putin, by contrast, has quelled the economic mayhem – inflation is down, pensions have increased. Even more importantly he has restored Russia’s sense of self-worth – crushing the Chechen revolt, refusing to play along with the West over Syria. Living in Notting Hill you might not find Putin to your taste, but for those facing the realities of contemporary Russia he is a godsend, the strong leader that the country needs at this crucial time of transition and uncertainty. of fact, millions would. Talk to many Russians and they’ll tell you that life under Putin is vastly better than under Boris Yeltsin. Yeltsin let a handful of oligarchs hoover up Russia’s wealth while ordinary Russians were reduced to selling their possessions on the street. Putin, by contrast, has quelled the economic mayhem – inflation is down, pensions have increased. Even more importantly he has restored Russia’s sense of self-worth – crushing the Chechen revolt, refusing to play along with the West over Syria. Living in Notting Hill you might not find Putin to your taste, but for those facing the realities of contemporary Russia he is a godsend, the strong leader that the country needs at this crucial time of transition and uncertainty.
I admit that the deals have yet to come to fruition but that doesn't mean that they never will.
We will have to wait and see who's right...
Good luck to you on your short play ;)
Cheers!
Great article!
Europe Doubles Down on Russian Gas
After years of talking the talk of reducing reliance on Russian energy, why is Europe now seemingly poised to cement its dependence with a huge new pipeline across the Baltic?
Europe has spent years trying to wriggle free from its dependence on Russian energy and the whims of its mercurial president, Vladimir Putin. So why is the continent signing up for a new gas pipeline that will keep Europe hostage to Russian energy shenanigans and outright blackmail for decades to come?
Russia’s multibillion-dollar plans to expand the capacity of the existing Nord Stream pipeline across the Baltic Sea to Germany, announced earlier this year, are taking shape faster than most observers expected — and stand in stark contrast to the bevy of other stillborn energy projects Russia keeps announcing.
Top-flight Western firms such as Shell, E.On, BASF, and Engie (formerly GDF Suez) have banded together with Russia’s Gazprom to double the capacity of Nord Stream, with hopes it will be operational by late 2019. If completed, the 10 billion euro project would enable Russia to finally bypass Ukraine as a transit country. That might be good for Russia, which hates Ukraine being in a position to meddle with its gas exports, but would increase Kiev’s vulnerability to heavy-handed Russian tactics. It could also leave other Eastern European countries in the lurch because they’ve been getting gas shipped directly west from Russia through Kiev.
The new and improved Nord Stream makes two things clear. First, for all of Russia’s talk of a pivot to Asia, including huge amounts of energy exports, Europe is and will remain the overwhelming priority for Gazprom. Second, for all of Europe’s talk about the need to find new suppliers and reduce reliance on Russia, especially in the wake of the invasion of Ukraine, much of the continent’s energy policy is ultimately in the hands of companies, not countries. That complicates efforts by the European Union and its member states, all constantly prodded by U.S. officials, to find alternatives to further reliance on Russian energy.
“What Nord Stream does is confirm the centrality of Europe in Russian gas thinking. The whole pivot to the East, the idea of the East being built up as an alternative to Europe, it’s going down the tubes,” said John Roberts, a pipeline expert at Methinks Ltd., an energy consultancy, and a nonresident fellow at the Atlantic Council.
The fact that big Western firms are rushing to ink deals with Gazprom to bring additional amounts of Russian gas into the heart of Europe also underscores the way commercial considerations — not grand strategy — underpin Europe’s approach to meeting its energy needs despite years of hand-wringing in Brussels over Europe’s huge and growing dependence on imported fuels.
“You have to separate companies from governments. The whole European diversification effort has largely been a matter for governments,” Roberts said. In contrast, he said, “the only companies who even mention diversification in terms of energy security are those for whom it is naturally good because they have a resource that they want to exploit.” The companies piling into Nord Stream see it as a “purely commercial decision,” Roberts said, divorced from any wider considerations of Europe’s energy security.
The decision to double Nord Stream’s capacity, announced in June, came as somewhat of a shock. The notion had been on the table practically since the original pipeline, which can carry 55 billion cubic meters of gas a year, came online in 2011. In 2012 and 2013, Gazprom talked up the option of doubling Nord Stream and serving countries as far away as Britain. But then, as tensions between Europe and Russia peaked early this year, Nord Stream’s expansion seemed to become a casualty of diplomatic and economic sparring.
“There are no plans to expand Nord Stream for now,” a Gazprom spokesman told Bloomberg in January.
Those plans reappeared in a hurry. In June, the Russian energy giant and its Western partners announced they would be doubling Nord Stream after all. But coming amidst a flurry of failed and flailing Russian pipeline projects — two in China, one in Turkey, and one scrapped project in the Black Sea — most observers viewed the Nord Stream announcement skeptically. The existing Nord Stream isn’t even fully utilized. And Europe doesn’t need additional volumes of natural gas right now. What it does need, it can still get from Russia via Ukraine. All that seemed to make the notion of an expanded Nord Stream another of Putin’s pipe dreams.
Yet the expansion now seems very real. In early September, Gazprom and the Western firms signed the shareholder agreement that puts the project on solid footing. Gazprom boss Alexei Miller underscored that participation by Western energy titans burnishes the prospects of what otherwise could have been just another Russian dream.
Now that the project is apparently going ahead, many leaders across Europe are going ballistic. Polish President Andrzej Duda said Tuesday it raised questions about European unity. On Thursday, Slovakia’s prime minister called the pipeline a “betrayal,” while Ukrainian Prime Minister Arseniy Yatsenyuk described it as “an anti-European and anti-Ukrainian project.” He urged the European Union to block the project.
Maros Sefcovic, Europe’s point man for the Energy Union, meant to give the 28-nation bloc a common voice on energy issues, criticized the proposed pipeline Monday, saying that it could unhinge the whole energy balance in the region. After the new deal was announced, the European Commission, the EU’s executive body, pointedly reiterated that finding gas suppliers other than Russia remains a priority for Brussels and that Ukraine should remain part of the transit network to Europe. The commission vowed to “assess any such new pipeline rigorously against the application of EU law.”
The top U.S. energy diplomat, Amos Hochstein, also expressed concern about the impact of Nord Stream’s expansion, telling Reuters last week that the project could allow Russia to cut off Ukraine and jeopardize European security.
But if the project is so at odds with Europe’s strategic goals and seems to have unhinged leaders across the continent, why on earth are European firms supporting it?
One explanation, offered by the Nord Stream companies themselves, is that the additional capacity will be needed to bring in more Russian gas just as Europe’s own reserves start to run empty. Norway, for instance, a big supplier of natural gas to the rest of Europe, expects to see its exports start to dwindle right about the time Nord Stream would be expanded. Gas production in the Netherlands, too, is under pressure. And once tantalizing alternatives, whether natural gas from the United States or from the eastern Mediterranean, have yet to materialize.
But there’s one multibillion-dollar reason that European (and American) energy companies have continued to court Russian business even after a wave of Ukraine-related sanctions meant to kneecap Russia’s access to Western capital and technology: the size of the potential prize. It was no coincidence that on the same day the shareholders in Nord Stream inked their deal, the heads of Shell, BASF, and Austria’s OMV all met with Putin to discuss other juicy business opportunities. There are political tensions between Europe and Russia right now, in other words, but for an energy business that thinks in decade-long timescales, a narrow point of view can be self-defeating for corporate survival.
To be sure, the Nord Stream expansion, like all of Putin’s projects, still faces several hurdles. Any energy project landing in the EU, like the Nord Stream expansion, has to comply with a full suite of European Union regulation. Russia’s inability or unwillingness to comply with EU law ultimately scuttled one of Putin’s other grandiose ideas, the so-called “South Stream” pipeline that would have crossed the Black Sea and fed Europe via Bulgaria. And there are still questions about how much access Gazprom can get to smaller pipelines inside Europe needed to ultimately distribute that gas to all the different countries. Overshadowing all of Gazprom’s plans is the ongoing EU antitrust investigation into the firm’s alleged price gouging and anti-competitive behavior.
There’s also the question of just how much Russia and Gazprom will ultimately need a bigger and better Nord Stream. Russia has long sought to stop shipping gas through Ukraine, which it sees as a troublesome and unreliable neighbor. That quest for a bypass underpinned all sorts of projects, from the now-defunct South Stream, to the sputtering Turkish Stream line across the Black Sea to Turkey and on to Europe, to Nord Stream itself. But Gazprom hinted this summer that Russia may have given up on the idea of bypassing Ukraine altogether, which could make Nord Stream or Turkish Stream — or both — unnecessary.
Still, given the strong corporate backing for Nord Stream, a successful track record building the original pipeline, and the relatively modest price tag, the Baltic Sea pipe seems poised at this point to be Russia’s leading option for maintaining its hold over Europe’s energy supplies.
“In finding a successful way to deliver to Central Europe without using Ukraine, Nord Stream comes in as the best bet,”
I understand your point of view but simply put: there is more going on in the gas world than those pipelines in E. and W. Siberia.
Despite sanctions it's back to business as usual. Large Western companies don't shy away from Gazprom. They know why.....
I understand your point of view but simply put: there is more going on in the gas world than those pipelines in E. and W. Siberia.
Despite sanctions it's back to business as usual. Large Western companies don't shy away from Gazprom. They know why.....
Why so negative? Gazprom is the largest gas producer in the world and possesses the largest gas transport system in the world. Surely that means something...
The sanctions can't and won't stop them from continuing to do business with large companies. It is just a matter of seeing through political and economical issues.
It's almost back to business as usual imo.
Apologies for he multi posts..server hick-up??
Hated Russia And Gazprom A Great Value Play
Sep. 3, 2015 4:08 PM ET | About: Gazprom OAO ADR (OGZPY)
Russia growth for the year up almost 15 percent.
Gazprom is a great value play, as it continues to throw off strong earnings.
The ruble and lower export taxes are the main catalysts behind its performance.
Even though Russia has been reportedly pressured from the plunge in oil prices and economic sanctions from some countries, it has in fact held up well, up approximately 15 percent so far in 2015, making it among the best economic performers of the year.
Based upon long-term Cyclically Adjusted Price Earnings, it is now the second-cheapest market in the world at this time. It's now trading at a P/E of close to 4.8, and has a price-to-book ratio of 0.7.
When compared with the MSCI Emerging Markets Index, it trades at approximately half that level, moving it into a value play for investors willing to hold for the longer term.
With Russia hated and inexpensive, it's definitely time to take a closer look.
As a major Russian play we'll look at giant gas producer Gazprom (OTCPK:OGZPY), which is trading at a price-to-earnings ratio of 5 as I write.
(click to enlarge) source: StockCharts.com
Latest earnings
In Gazprom's latest quarter net profit soared to 293.8 billion rubles, or $4.75 billion, a year-over-year gain of 29 percent. The major catalyst there was the ruble, which has been under extreme pressure from falling oil prices.
In the first half earnings climbed over 675 billion rubles, which represented an annual growth rate of 50 percent. That remains on target, and could surpass it based upon its most recent quarterly performance.
For the first time in 10 quarters, free cash flow came in negative, with revenue dropping by 3.8 percent.
Lower revenue doesn't bother me with Russia's currency dictating the earnings of Gazprom. If oil and gas revenue go up, and the ruble does as well, the profit narrative for Gazprom will continue on.
We may see lower oil and gas prices, but where Gazprom stands right now, it's still a good value play for those with a long-term investing horizon.
Ruble
Even though commodities have been taking a beating for some time, the demand part of the equation isn't the only factor in determining the profitability of natural resource companies.
One element included in the mix is the value of the currency of a respective nation a company is based in, which will determine the results at the bottom line when the currency has fallen.
That has been the case with Gazprom, which has been doing very well for that reason alone.
Recent U.S. crude inventories data reveal stockpiles were climbing at a higher rate than expected, which mean oil prices, which directly have an impact on the value of the ruble, will keep downward pressure on the currency. That's good news for Gazprom and other Russian companies exporting commodities.
For those not familiar with the impact of currencies on exports, with Russia companies pay the majority of their costs with rubles, but generates most sales or revenue in the U.S. dollar or the euro. The difference between the two is what has been driving Gazprom's solid performance, and Russia's overall economic growth in 2015.
Under these conditions, Gazprom is hard to compete against internationally, and will continue to be for some time.
Another earnings and growth catalyst has been the cut in export duties in January, 2015, which has aided Gazprom in its profitability as well.
The general point is there are ways for an energy company to generate solid earnings in a low-demand, low-price market.
European business
At this time approximately 56 present of Gazprom's sales come from Europe, with gas sales jumping to about RUB 946 billion, or $9 billion, in the last quarter.
The importance of that is even with all the geopolitical talk and negative press Russia has received, as it relates to Gazprom and its European business, it hasn't had much, if any, effect. Unless something major happens to change the scenario, that will continue. I wouldn't look for any negative from Europe over the next several years, barring an unforeseen crisis.
Gazprom said Europe was the major catalyst for sales growth in the first half. The EU gets approximately 20 percent of its natural gas from Russia.
There are rumblings of EU countries searching for new natural gas imports, with Azerbaijan getting the call for more business. Anticipating some lost business over time, Gazprom has responded by looking to Asia to open up new markets.
All of that is bantered around in the media as if it's something that will happen in the near future. At earliest, it's likely to take a minimum of four years, or longer, for that to have material impact on Gazprom.
Gas prices in Germany, the largest individual market of Gazprom, have been falling, and expectations are that will be the case in the overall EU as well over the next 12 months.
As long as the ruble remains weak, that won't cut into earnings.
The bottom line for year is investors need to ignore the headlines concerning political issues. That won't have any impact on Gazprom unless something escalates.
China pipeline
In 2014, Putin and China reached an agreement on a $400 billion deal to supply gas to the Middle Kingdom from east Siberia. That was the first major move Russia made in response to sanctions and potential long-term shrinkage of its Western markets.
Gazprom is now working on a deal to supply gas from its fields in west Siberia, which would land the company another 30-year contract if things go according to plan.
All of that gas will need a pipeline, with a couple of different options now on the table. Originally Russia was looking to supply China from its western fields, but now it looks like China would be more amiable to a pipeline coming from the east.
In the near future Gazprom will sign a memorandum of understanding with China concerning the pipeline from the east. The western Siberian deal is "unlikely" to have a signed contract at the same time. That will engaged in separately.
The combination of the two deals would bring the total cubic meters of gas delivered annually by Gazprom to China to about 68 billion.
Conclusion
Gazprom is undervalued primarily because of the weak ruble, which because the bulk of its costs come from the domestic sector, it generates strong earnings because of its sales being transacted in the U.S. dollar and euro.
Its largest market Europe, will continue to be so for at least several years, with nothing less than a major crisis changing that outlook.
China is poised to become its biggest gas trading partner, which over time will produce a significant increase in revenue and earnings.
Add to that the fact when gas and oil prices rise, the ruble will rise with them, which means margins and earnings should remain fairly level. That could change if the ruble rallies strongly, which would at that time put some pressure on earnings. I don't see that happening anytime soon.
Trading at a P/E of about 5 makes Gazprom an extremely undervalued company in light of the fact it keeps churning out strong earnings.
Right now is a good entry point, but if there is further erosion of the ruble, it will get even better. Either way this is a good value play.
http://seekingalpha.com/article/3488916 ... play?ifp=0
Hated Russia And Gazprom A Great Value Play
Sep. 3, 2015 4:08 PM ET | About: Gazprom OAO ADR (OGZPY)
Russia growth for the year up almost 15 percent.
Gazprom is a great value play, as it continues to throw off strong earnings.
The ruble and lower export taxes are the main catalysts behind its performance.
Even though Russia has been reportedly pressured from the plunge in oil prices and economic sanctions from some countries, it has in fact held up well, up approximately 15 percent so far in 2015, making it among the best economic performers of the year.
Based upon long-term Cyclically Adjusted Price Earnings, it is now the second-cheapest market in the world at this time. It's now trading at a P/E of close to 4.8, and has a price-to-book ratio of 0.7.
When compared with the MSCI Emerging Markets Index, it trades at approximately half that level, moving it into a value play for investors willing to hold for the longer term.
With Russia hated and inexpensive, it's definitely time to take a closer look.
As a major Russian play we'll look at giant gas producer Gazprom (OTCPK:OGZPY), which is trading at a price-to-earnings ratio of 5 as I write.
(click to enlarge) source: StockCharts.com
Latest earnings
In Gazprom's latest quarter net profit soared to 293.8 billion rubles, or $4.75 billion, a year-over-year gain of 29 percent. The major catalyst there was the ruble, which has been under extreme pressure from falling oil prices.
In the first half earnings climbed over 675 billion rubles, which represented an annual growth rate of 50 percent. That remains on target, and could surpass it based upon its most recent quarterly performance.
For the first time in 10 quarters, free cash flow came in negative, with revenue dropping by 3.8 percent.
Lower revenue doesn't bother me with Russia's currency dictating the earnings of Gazprom. If oil and gas revenue go up, and the ruble does as well, the profit narrative for Gazprom will continue on.
We may see lower oil and gas prices, but where Gazprom stands right now, it's still a good value play for those with a long-term investing horizon.
Ruble
Even though commodities have been taking a beating for some time, the demand part of the equation isn't the only factor in determining the profitability of natural resource companies.
One element included in the mix is the value of the currency of a respective nation a company is based in, which will determine the results at the bottom line when the currency has fallen.
That has been the case with Gazprom, which has been doing very well for that reason alone.
Recent U.S. crude inventories data reveal stockpiles were climbing at a higher rate than expected, which mean oil prices, which directly have an impact on the value of the ruble, will keep downward pressure on the currency. That's good news for Gazprom and other Russian companies exporting commodities.
For those not familiar with the impact of currencies on exports, with Russia companies pay the majority of their costs with rubles, but generates most sales or revenue in the U.S. dollar or the euro. The difference between the two is what has been driving Gazprom's solid performance, and Russia's overall economic growth in 2015.
Under these conditions, Gazprom is hard to compete against internationally, and will continue to be for some time.
Another earnings and growth catalyst has been the cut in export duties in January, 2015, which has aided Gazprom in its profitability as well.
The general point is there are ways for an energy company to generate solid earnings in a low-demand, low-price market.
European business
At this time approximately 56 present of Gazprom's sales come from Europe, with gas sales jumping to about RUB 946 billion, or $9 billion, in the last quarter.
The importance of that is even with all the geopolitical talk and negative press Russia has received, as it relates to Gazprom and its European business, it hasn't had much, if any, effect. Unless something major happens to change the scenario, that will continue. I wouldn't look for any negative from Europe over the next several years, barring an unforeseen crisis.
Gazprom said Europe was the major catalyst for sales growth in the first half. The EU gets approximately 20 percent of its natural gas from Russia.
There are rumblings of EU countries searching for new natural gas imports, with Azerbaijan getting the call for more business. Anticipating some lost business over time, Gazprom has responded by looking to Asia to open up new markets.
All of that is bantered around in the media as if it's something that will happen in the near future. At earliest, it's likely to take a minimum of four years, or longer, for that to have material impact on Gazprom.
Gas prices in Germany, the largest individual market of Gazprom, have been falling, and expectations are that will be the case in the overall EU as well over the next 12 months.
As long as the ruble remains weak, that won't cut into earnings.
The bottom line for year is investors need to ignore the headlines concerning political issues. That won't have any impact on Gazprom unless something escalates.
China pipeline
In 2014, Putin and China reached an agreement on a $400 billion deal to supply gas to the Middle Kingdom from east Siberia. That was the first major move Russia made in response to sanctions and potential long-term shrinkage of its Western markets.
Gazprom is now working on a deal to supply gas from its fields in west Siberia, which would land the company another 30-year contract if things go according to plan.
All of that gas will need a pipeline, with a couple of different options now on the table. Originally Russia was looking to supply China from its western fields, but now it looks like China would be more amiable to a pipeline coming from the east.
In the near future Gazprom will sign a memorandum of understanding with China concerning the pipeline from the east. The western Siberian deal is "unlikely" to have a signed contract at the same time. That will engaged in separately.
The combination of the two deals would bring the total cubic meters of gas delivered annually by Gazprom to China to about 68 billion.
Conclusion
Gazprom is undervalued primarily because of the weak ruble, which because the bulk of its costs come from the domestic sector, it generates strong earnings because of its sales being transacted in the U.S. dollar and euro.
Its largest market Europe, will continue to be so for at least several years, with nothing less than a major crisis changing that outlook.
China is poised to become its biggest gas trading partner, which over time will produce a significant increase in revenue and earnings.
Add to that the fact when gas and oil prices rise, the ruble will rise with them, which means margins and earnings should remain fairly level. That could change if the ruble rallies strongly, which would at that time put some pressure on earnings. I don't see that happening anytime soon.
Trading at a P/E of about 5 makes Gazprom an extremely undervalued company in light of the fact it keeps churning out strong earnings.
Right now is a good entry point, but if there is further erosion of the ruble, it will get even better. Either way this is a good value play.
http://seekingalpha.com/article/3488916 ... play?ifp=0
Hated Russia And Gazprom A Great Value Play
Sep. 3, 2015 4:08 PM ET | About: Gazprom OAO ADR (OGZPY)
Russia growth for the year up almost 15 percent.
Gazprom is a great value play, as it continues to throw off strong earnings.
The ruble and lower export taxes are the main catalysts behind its performance.
Even though Russia has been reportedly pressured from the plunge in oil prices and economic sanctions from some countries, it has in fact held up well, up approximately 15 percent so far in 2015, making it among the best economic performers of the year.
Based upon long-term Cyclically Adjusted Price Earnings, it is now the second-cheapest market in the world at this time. It's now trading at a P/E of close to 4.8, and has a price-to-book ratio of 0.7.
When compared with the MSCI Emerging Markets Index, it trades at approximately half that level, moving it into a value play for investors willing to hold for the longer term.
With Russia hated and inexpensive, it's definitely time to take a closer look.
As a major Russian play we'll look at giant gas producer Gazprom (OTCPK:OGZPY), which is trading at a price-to-earnings ratio of 5 as I write.
(click to enlarge) source: StockCharts.com
Latest earnings
In Gazprom's latest quarter net profit soared to 293.8 billion rubles, or $4.75 billion, a year-over-year gain of 29 percent. The major catalyst there was the ruble, which has been under extreme pressure from falling oil prices.
In the first half earnings climbed over 675 billion rubles, which represented an annual growth rate of 50 percent. That remains on target, and could surpass it based upon its most recent quarterly performance.
For the first time in 10 quarters, free cash flow came in negative, with revenue dropping by 3.8 percent.
Lower revenue doesn't bother me with Russia's currency dictating the earnings of Gazprom. If oil and gas revenue go up, and the ruble does as well, the profit narrative for Gazprom will continue on.
We may see lower oil and gas prices, but where Gazprom stands right now, it's still a good value play for those with a long-term investing horizon.
Ruble
Even though commodities have been taking a beating for some time, the demand part of the equation isn't the only factor in determining the profitability of natural resource companies.
One element included in the mix is the value of the currency of a respective nation a company is based in, which will determine the results at the bottom line when the currency has fallen.
That has been the case with Gazprom, which has been doing very well for that reason alone.
Recent U.S. crude inventories data reveal stockpiles were climbing at a higher rate than expected, which mean oil prices, which directly have an impact on the value of the ruble, will keep downward pressure on the currency. That's good news for Gazprom and other Russian companies exporting commodities.
For those not familiar with the impact of currencies on exports, with Russia companies pay the majority of their costs with rubles, but generates most sales or revenue in the U.S. dollar or the euro. The difference between the two is what has been driving Gazprom's solid performance, and Russia's overall economic growth in 2015.
Under these conditions, Gazprom is hard to compete against internationally, and will continue to be for some time.
Another earnings and growth catalyst has been the cut in export duties in January, 2015, which has aided Gazprom in its profitability as well.
The general point is there are ways for an energy company to generate solid earnings in a low-demand, low-price market.
European business
At this time approximately 56 present of Gazprom's sales come from Europe, with gas sales jumping to about RUB 946 billion, or $9 billion, in the last quarter.
The importance of that is even with all the geopolitical talk and negative press Russia has received, as it relates to Gazprom and its European business, it hasn't had much, if any, effect. Unless something major happens to change the scenario, that will continue. I wouldn't look for any negative from Europe over the next several years, barring an unforeseen crisis.
Gazprom said Europe was the major catalyst for sales growth in the first half. The EU gets approximately 20 percent of its natural gas from Russia.
There are rumblings of EU countries searching for new natural gas imports, with Azerbaijan getting the call for more business. Anticipating some lost business over time, Gazprom has responded by looking to Asia to open up new markets.
All of that is bantered around in the media as if it's something that will happen in the near future. At earliest, it's likely to take a minimum of four years, or longer, for that to have material impact on Gazprom.
Gas prices in Germany, the largest individual market of Gazprom, have been falling, and expectations are that will be the case in the overall EU as well over the next 12 months.
As long as the ruble remains weak, that won't cut into earnings.
The bottom line for year is investors need to ignore the headlines concerning political issues. That won't have any impact on Gazprom unless something escalates.
China pipeline
In 2014, Putin and China reached an agreement on a $400 billion deal to supply gas to the Middle Kingdom from east Siberia. That was the first major move Russia made in response to sanctions and potential long-term shrinkage of its Western markets.
Gazprom is now working on a deal to supply gas from its fields in west Siberia, which would land the company another 30-year contract if things go according to plan.
All of that gas will need a pipeline, with a couple of different options now on the table. Originally Russia was looking to supply China from its western fields, but now it looks like China would be more amiable to a pipeline coming from the east.
In the near future Gazprom will sign a memorandum of understanding with China concerning the pipeline from the east. The western Siberian deal is "unlikely" to have a signed contract at the same time. That will engaged in separately.
The combination of the two deals would bring the total cubic meters of gas delivered annually by Gazprom to China to about 68 billion.
Conclusion
Gazprom is undervalued primarily because of the weak ruble, which because the bulk of its costs come from the domestic sector, it generates strong earnings because of its sales being transacted in the U.S. dollar and euro.
Its largest market Europe, will continue to be so for at least several years, with nothing less than a major crisis changing that outlook.
China is poised to become its biggest gas trading partner, which over time will produce a significant increase in revenue and earnings.
Add to that the fact when gas and oil prices rise, the ruble will rise with them, which means margins and earnings should remain fairly level. That could change if the ruble rallies strongly, which would at that time put some pressure on earnings. I don't see that happening anytime soon.
Trading at a P/E of about 5 makes Gazprom an extremely undervalued company in light of the fact it keeps churning out strong earnings.
Right now is a good entry point, but if there is further erosion of the ruble, it will get even better. Either way this is a good value play.
http://seekingalpha.com/article/3488916 ... play?ifp=0
Hated Russia And Gazprom A Great Value Play
Sep. 3, 2015 4:08 PM ET | About: Gazprom OAO ADR (OGZPY)
Russia growth for the year up almost 15 percent.
Gazprom is a great value play, as it continues to throw off strong earnings.
The ruble and lower export taxes are the main catalysts behind its performance.
Even though Russia has been reportedly pressured from the plunge in oil prices and economic sanctions from some countries, it has in fact held up well, up approximately 15 percent so far in 2015, making it among the best economic performers of the year.
Based upon long-term Cyclically Adjusted Price Earnings, it is now the second-cheapest market in the world at this time. It's now trading at a P/E of close to 4.8, and has a price-to-book ratio of 0.7.
When compared with the MSCI Emerging Markets Index, it trades at approximately half that level, moving it into a value play for investors willing to hold for the longer term.
With Russia hated and inexpensive, it's definitely time to take a closer look.
As a major Russian play we'll look at giant gas producer Gazprom (OTCPK:OGZPY), which is trading at a price-to-earnings ratio of 5 as I write.
(click to enlarge) source: StockCharts.com
Latest earnings
In Gazprom's latest quarter net profit soared to 293.8 billion rubles, or $4.75 billion, a year-over-year gain of 29 percent. The major catalyst there was the ruble, which has been under extreme pressure from falling oil prices.
In the first half earnings climbed over 675 billion rubles, which represented an annual growth rate of 50 percent. That remains on target, and could surpass it based upon its most recent quarterly performance.
For the first time in 10 quarters, free cash flow came in negative, with revenue dropping by 3.8 percent.
Lower revenue doesn't bother me with Russia's currency dictating the earnings of Gazprom. If oil and gas revenue go up, and the ruble does as well, the profit narrative for Gazprom will continue on.
We may see lower oil and gas prices, but where Gazprom stands right now, it's still a good value play for those with a long-term investing horizon.
Ruble
Even though commodities have been taking a beating for some time, the demand part of the equation isn't the only factor in determining the profitability of natural resource companies.
One element included in the mix is the value of the currency of a respective nation a company is based in, which will determine the results at the bottom line when the currency has fallen.
That has been the case with Gazprom, which has been doing very well for that reason alone.
Recent U.S. crude inventories data reveal stockpiles were climbing at a higher rate than expected, which mean oil prices, which directly have an impact on the value of the ruble, will keep downward pressure on the currency. That's good news for Gazprom and other Russian companies exporting commodities.
For those not familiar with the impact of currencies on exports, with Russia companies pay the majority of their costs with rubles, but generates most sales or revenue in the U.S. dollar or the euro. The difference between the two is what has been driving Gazprom's solid performance, and Russia's overall economic growth in 2015.
Under these conditions, Gazprom is hard to compete against internationally, and will continue to be for some time.
Another earnings and growth catalyst has been the cut in export duties in January, 2015, which has aided Gazprom in its profitability as well.
The general point is there are ways for an energy company to generate solid earnings in a low-demand, low-price market.
European business
At this time approximately 56 present of Gazprom's sales come from Europe, with gas sales jumping to about RUB 946 billion, or $9 billion, in the last quarter.
The importance of that is even with all the geopolitical talk and negative press Russia has received, as it relates to Gazprom and its European business, it hasn't had much, if any, effect. Unless something major happens to change the scenario, that will continue. I wouldn't look for any negative from Europe over the next several years, barring an unforeseen crisis.
Gazprom said Europe was the major catalyst for sales growth in the first half. The EU gets approximately 20 percent of its natural gas from Russia.
There are rumblings of EU countries searching for new natural gas imports, with Azerbaijan getting the call for more business. Anticipating some lost business over time, Gazprom has responded by looking to Asia to open up new markets.
All of that is bantered around in the media as if it's something that will happen in the near future. At earliest, it's likely to take a minimum of four years, or longer, for that to have material impact on Gazprom.
Gas prices in Germany, the largest individual market of Gazprom, have been falling, and expectations are that will be the case in the overall EU as well over the next 12 months.
As long as the ruble remains weak, that won't cut into earnings.
The bottom line for year is investors need to ignore the headlines concerning political issues. That won't have any impact on Gazprom unless something escalates.
China pipeline
In 2014, Putin and China reached an agreement on a $400 billion deal to supply gas to the Middle Kingdom from east Siberia. That was the first major move Russia made in response to sanctions and potential long-term shrinkage of its Western markets.
Gazprom is now working on a deal to supply gas from its fields in west Siberia, which would land the company another 30-year contract if things go according to plan.
All of that gas will need a pipeline, with a couple of different options now on the table. Originally Russia was looking to supply China from its western fields, but now it looks like China would be more amiable to a pipeline coming from the east.
In the near future Gazprom will sign a memorandum of understanding with China concerning the pipeline from the east. The western Siberian deal is "unlikely" to have a signed contract at the same time. That will engaged in separately.
The combination of the two deals would bring the total cubic meters of gas delivered annually by Gazprom to China to about 68 billion.
Conclusion
Gazprom is undervalued primarily because of the weak ruble, which because the bulk of its costs come from the domestic sector, it generates strong earnings because of its sales being transacted in the U.S. dollar and euro.
Its largest market Europe, will continue to be so for at least several years, with nothing less than a major crisis changing that outlook.
China is poised to become its biggest gas trading partner, which over time will produce a significant increase in revenue and earnings.
Add to that the fact when gas and oil prices rise, the ruble will rise with them, which means margins and earnings should remain fairly level. That could change if the ruble rallies strongly, which would at that time put some pressure on earnings. I don't see that happening anytime soon.
Trading at a P/E of about 5 makes Gazprom an extremely undervalued company in light of the fact it keeps churning out strong earnings.
Right now is a good entry point, but if there is further erosion of the ruble, it will get even better. Either way this is a good value play.
http://seekingalpha.com/article/3488916 ... play?ifp=0
Hated Russia And Gazprom A Great Value Play
Sep. 3, 2015 4:08 PM ET | About: Gazprom OAO ADR (OGZPY)
Russia growth for the year up almost 15 percent.
Gazprom is a great value play, as it continues to throw off strong earnings.
The ruble and lower export taxes are the main catalysts behind its performance.
Even though Russia has been reportedly pressured from the plunge in oil prices and economic sanctions from some countries, it has in fact held up well, up approximately 15 percent so far in 2015, making it among the best economic performers of the year.
Based upon long-term Cyclically Adjusted Price Earnings, it is now the second-cheapest market in the world at this time. It's now trading at a P/E of close to 4.8, and has a price-to-book ratio of 0.7.
When compared with the MSCI Emerging Markets Index, it trades at approximately half that level, moving it into a value play for investors willing to hold for the longer term.
With Russia hated and inexpensive, it's definitely time to take a closer look.
As a major Russian play we'll look at giant gas producer Gazprom (OTCPK:OGZPY), which is trading at a price-to-earnings ratio of 5 as I write.
(click to enlarge) source: StockCharts.com
Latest earnings
In Gazprom's latest quarter net profit soared to 293.8 billion rubles, or $4.75 billion, a year-over-year gain of 29 percent. The major catalyst there was the ruble, which has been under extreme pressure from falling oil prices.
In the first half earnings climbed over 675 billion rubles, which represented an annual growth rate of 50 percent. That remains on target, and could surpass it based upon its most recent quarterly performance.
For the first time in 10 quarters, free cash flow came in negative, with revenue dropping by 3.8 percent.
Lower revenue doesn't bother me with Russia's currency dictating the earnings of Gazprom. If oil and gas revenue go up, and the ruble does as well, the profit narrative for Gazprom will continue on.
We may see lower oil and gas prices, but where Gazprom stands right now, it's still a good value play for those with a long-term investing horizon.
Ruble
Even though commodities have been taking a beating for some time, the demand part of the equation isn't the only factor in determining the profitability of natural resource companies.
One element included in the mix is the value of the currency of a respective nation a company is based in, which will determine the results at the bottom line when the currency has fallen.
That has been the case with Gazprom, which has been doing very well for that reason alone.
Recent U.S. crude inventories data reveal stockpiles were climbing at a higher rate than expected, which mean oil prices, which directly have an impact on the value of the ruble, will keep downward pressure on the currency. That's good news for Gazprom and other Russian companies exporting commodities.
For those not familiar with the impact of currencies on exports, with Russia companies pay the majority of their costs with rubles, but generates most sales or revenue in the U.S. dollar or the euro. The difference between the two is what has been driving Gazprom's solid performance, and Russia's overall economic growth in 2015.
Under these conditions, Gazprom is hard to compete against internationally, and will continue to be for some time.
Another earnings and growth catalyst has been the cut in export duties in January, 2015, which has aided Gazprom in its profitability as well.
The general point is there are ways for an energy company to generate solid earnings in a low-demand, low-price market.
European business
At this time approximately 56 present of Gazprom's sales come from Europe, with gas sales jumping to about RUB 946 billion, or $9 billion, in the last quarter.
The importance of that is even with all the geopolitical talk and negative press Russia has received, as it relates to Gazprom and its European business, it hasn't had much, if any, effect. Unless something major happens to change the scenario, that will continue. I wouldn't look for any negative from Europe over the next several years, barring an unforeseen crisis.
Gazprom said Europe was the major catalyst for sales growth in the first half. The EU gets approximately 20 percent of its natural gas from Russia.
There are rumblings of EU countries searching for new natural gas imports, with Azerbaijan getting the call for more business. Anticipating some lost business over time, Gazprom has responded by looking to Asia to open up new markets.
All of that is bantered around in the media as if it's something that will happen in the near future. At earliest, it's likely to take a minimum of four years, or longer, for that to have material impact on Gazprom.
Gas prices in Germany, the largest individual market of Gazprom, have been falling, and expectations are that will be the case in the overall EU as well over the next 12 months.
As long as the ruble remains weak, that won't cut into earnings.
The bottom line for year is investors need to ignore the headlines concerning political issues. That won't have any impact on Gazprom unless something escalates.
China pipeline
In 2014, Putin and China reached an agreement on a $400 billion deal to supply gas to the Middle Kingdom from east Siberia. That was the first major move Russia made in response to sanctions and potential long-term shrinkage of its Western markets.
Gazprom is now working on a deal to supply gas from its fields in west Siberia, which would land the company another 30-year contract if things go according to plan.
All of that gas will need a pipeline, with a couple of different options now on the table. Originally Russia was looking to supply China from its western fields, but now it looks like China would be more amiable to a pipeline coming from the east.
In the near future Gazprom will sign a memorandum of understanding with China concerning the pipeline from the east. The western Siberian deal is "unlikely" to have a signed contract at the same time. That will engaged in separately.
The combination of the two deals would bring the total cubic meters of gas delivered annually by Gazprom to China to about 68 billion.
Conclusion
Gazprom is undervalued primarily because of the weak ruble, which because the bulk of its costs come from the domestic sector, it generates strong earnings because of its sales being transacted in the U.S. dollar and euro.
Its largest market Europe, will continue to be so for at least several years, with nothing less than a major crisis changing that outlook.
China is poised to become its biggest gas trading partner, which over time will produce a significant increase in revenue and earnings.
Add to that the fact when gas and oil prices rise, the ruble will rise with them, which means margins and earnings should remain fairly level. That could change if the ruble rallies strongly, which would at that time put some pressure on earnings. I don't see that happening anytime soon.
Trading at a P/E of about 5 makes Gazprom an extremely undervalued company in light of the fact it keeps churning out strong earnings.
Right now is a good entry point, but if there is further erosion of the ruble, it will get even better. Either way this is a good value play.
http://seekingalpha.com/article/3488916 ... play?ifp=0
Russia's Gazprom Cements Gas Ties with European Partners
ReutersSep. 04 2015 14:43 Last edited 14:44
Russia's Gazprom increased its industrial muscle in the heart of Europe on Friday, bulking up through deals on asset swaps and more pipeline capacity with energy companies keen to get back to business as usual.
Gazprom secured access to western European gas storage as well as a deal with industry partners to double the capacity of the Nord Stream pipeline to deliver gas to Europe bypassing Ukraine, with which Russia is in a protracted conflict.
The surprise revival of an abandoned deal between the Russian behemoth and German chemicals group BASF will give Gazprom access to German gas trading and storage in exchange for more stakes in Siberian gas fields.
BASF's oil and gas production unit Wintershall said in a statement that the partners had deemed the time ready to complete the transaction. “We are convinced that natural gas from Russia is necessary to ensure energy security in Europe,” it said.
The European Union has been trying to loosen Russia's grip on the EU's gas supply — it currently supplies one-third of the gas used by the bloc. Gazprom abandoned its South Stream pipeline project, designed to deliver gas from Russia to Europe via the Black Sea and Bulgaria, last year under EU pressure.
The EU has instead encouraged the development of alternative supplies from the Caspian Sea and the United States.
An agreement with a group of Western energy companies on the Nord Stream link via the Baltic Sea to Europe will now allow it to come online in 2019, giving it a head start on the competition.
“The fact that the global energy majors participate in the project bespeaks its significance for securing reliable gas supply to European consumers,” said Gazprom Chairman Alexei Miller in a statement.
Many Western companies are reducing their exposure to Russia because of sanctions over Moscow's actions in Ukraine.
German officials remain concerned about the situation in Ukraine, but have praised Russia's approach during talks to seal an accord over Iran's nuclear program.
They say Moscow has also shown signs that it is prepared to play a more constructive role in discussions over how to resolve the civil war in Syria — the source of many of the hundreds of thousands of migrants heading for Europe.
Trustful Partnership
Austrian energy group OMV, a long-standing partner of Gazprom, separately reported progress on its own asset-swap talks with Gazprom.
OMV Chief Executive Rainer Seele, a German who recently joined the Austrian firm after many years at BASF, spoke of extending a “trustful partnership.”
Shell's Chief Executive Ben van Beurden, partner to the pipeline deal, stressed Europe's dependence on Russia.
“New projects like Nord Stream 2 are needed to ensure that Europe's demand for energy is met, especially as gas production in Europe itself is falling,” he said.
Nord Stream 2 will come online just as a rival pipeline is supposed to bring Caspian gas to Europe, boosting competition for market share in the bloc and loosening the ties between politics and energy security.
New liquefied natural gas (LNG) exports from the United States should also be in full swing by then and likely landing on Europe's shores in significant volumes, a development set to challenge Russia's current energy dominance.
I think so, yes.
Gazprom’s Benefit from Weak Ruble
NEW EUROPE INVESTOR
SEPTEMBER 03, 2015
Gazprom’s profit for the first six months of 2015 has increased by 50% compared to the same period last year.
The Russian gas giant made a net profit of 675.9 billion rubles (€8.9 billion) in the first half of 2015. The increase is due to gas being priced in dollars and the rubles significant drop to other major currencies throughout the world.
Gazprom’s turnover during the first six months of this year increased 1.4% compared to the first half of 2014. However, the volume of gas being exported in volume has decreased by 6.5%. Much of this decrease has come from lower supplies to the Ukraine and Lithuania’s installation of an LNG plant at the port of Klaipeda. Lithuania now import much of its gas from Norway’s Statoil in the form of liquid natural gas.
As Gazprom’s gas is primarily located in mainland Russia, its costs to extract it are in rubles. Revenues however, continue to be mostly priced in US dollars.
Trend is surely turning
heavy buys
50 10:05:45 5.39 100,000 nasd 5.36 5.38 100,000
605,002 13,794 5,372
49 10:00:46 5.38 100,000 nasd 5.35 5.38 100,000
505,002 13,794 5,372
48 10:00:07 5.38 100,000 nasd 5.36 5.38 100,000
405,002 13,794 5,372
47 09:59:54 5.37 1,000 nasd 5.36 5.38 1,000
305,002 13,794 5,372
46 09:55:24 5.37 200,000 nasd 5.35 5.37 200,000
305,002 13,794 4,372
45 09:55:11 5.36 190 nasd 5.35 5.37 190
105,002 13,794 4,372
44 09:55:01 5.35 56 nasd 5.35 5.37 56
105,002 13,794 4,182
43 09:52:51 5.37 99,102 nasd 5.35 5.37
Cracks in the "united" European sanctions :)
http://www.forbes.com/sites/kenrapoza/2015/06/21/are-european-companies-ignoring-e-u-sanctions-on-russia/2/
Are European Companies Ignoring E.U. Sanctions On Russia?
Absent from the St. Petersburg Forum were any announced deals with American oil and gas. ExxonMobil has been cut out of its $700 million joint venture with Rosneft in the Kara Sea because of Washington’s sanctions against the company. Meanwhile, its European rivals are muscling in on one of the cheapest places in the world to drill for hydrocarbons.
The St. Petersburg International Forum, which concluded in the northwestern Russian city on June 20, is a testament to how Russia remains a one trick pony. The deal making is all Gazprom and Rosneft. It’s as if Russia’s private sector, including investor favorites like pay processing firm Qiwi and Russian supermarket player Magnit, does not exist.
Gazprom also inked a sanction breaking 300 million euro loan from UniCredit Austria, state media reported on Sunday.
Last July, the E.U. banned its companies to sign any new financing deals with Russia. In September, the E.U. placed even more restrictions on Russia’s access to E.U. capital markets. The sanctions state that individuals and corporations from the E.U. are banned from providing loans to five major Russian state-owned banks, including Sberbank and VTB Bank, and the three state owned energy companies, of which Gazprom tops the list.
Another joint action with a large oilcompany:)
Gazprom and Total talk cooperation, Shtokman project
Gazprom’s Chief Executive Officer Alexey Miller and Patrick Pouyanne, CEO of Total, met on Friday in St. Petersburg where they discussed current and future bilateral cooperation of the two companies.
The companies expressed their readiness for joint actions in the areas of mutual interest both in Russia and abroad, including the participation in Total’s large-scale projects, according to a statement by Gazprom’s press office.
“Taking into account the successful cooperation with Total within the first phase of the Shtokman project, Total will be the first company invited by Gazprom to join us upon resuming this unique and technologically challenging project,” said Alexey Miller.
The Shtokman gas and condensate field is situated in the central part of the continental shelf within the Russian sector of the Barents Sea, about 600 kilometers northeast of Murmansk, at the sea depth reaching 340 meters. Shtokman is nowadays among the largest fields in terms of explored natural gas reserves. C1 reserves of the field make up around 3.9 trillion cubic meters of natural gas and 56 million tons of gas condensate.
Gazprom talks gas supply cooperation with Fluxys, EDF
Head of Russian giant Gazprom Alexey Miller held separate meetings with representatives from Fluxys and EDF.
In his meeting with Walter Peeraer, Chief Executive Officer of Fluxys, Miller addressed the current state of and the development prospects for the bilateral cooperation in the gas industry. A focus was put on Russian gas transit across Belgium to third countries, Gazprom revealed in a statement.
Currently Fluxys provides Gazprom with gas transmission capacities to supply gas to the UK.
Miller also explored the prospects for bilateral cooperation in supplying gas to Europe with EDF’s Senior Executive Vice President, Bruno Lescoeur.
Gazprom considers India a promising LNG customer
17/06/2015 RIA Novosti
Gazprom considers India as a promising LNG market, but it is not working on supplying natural gas to the country, said Alexander Medvedev, Deputy Chairman of the Board at Gazprom.
“We see the Indian market (LNG – Ed.) as a very promising one for the sales of natural gas, but we have not undertaken work in any of the possible directions of supply,” said Mr. Medvedev.
In early June, after a meeting between India’s Energy Minister Dharmendra Pradhan and Russian Energy Minister Alexander Novak, it was learned that India had expressed interest in importing oil and LNG from Russia.
Gazprom's Turkish pipeline talks expected to resume next week
ST PETERSBURG, Russia, June 17 (Reuters) - A meeting between the head of Russia's Gazprom's and Turkish Energy Minister Taner Yildiz is expected to be rescheduled for next week as both sides strive to finalise agreement on a proposed underwater gas pipeline to Turkey, a senior energy ministry official said on Wednesday.
Turkey was named as Russia's preferred partner for an alternative to its planned South Stream pipeline to carry gas to southern Europe without crossing Ukraine after Russia aborted the project in December, citing EU objections.
Gazprom now hopes to create a gas hub at the Turkish-Greek border for transit to Europe, but has yet to gain Turkey's agreement to build on its territory and also faces resistance from EU countries that want energy independence from Russia.
The Russian company announced the cancellation of Wednesday's meeting in St. Petersburg without giving a reason, but the Turkish energy ministry official said it had merely been postponed because Gazprom executives, including CEO Alexei Miller, were out of the country. Miller had begun talks with the ministry in May.
The ministry official said the postponed meeting is now expected to take place next week, with Turkey and Gazprom both aiming to finalise an agreement by the end of June.
Turkey is dependent on Russia for natural gas. Last year it bought 27.4 billion cubic metres of gas through the Blue Stream and Transbalkan pipeline, accounting for more than half of its gas imports. (Reporting by Vladimir Soldatkin; Additional reporting by Orhan Coskun in Ankara; Editing by Elizabeth Piper and David Goodman)
First of the "looming deals"
Gazprom" to choose a new foreign partner for Baltic LNG,probably Shell .
Submitted by Mikhail Barkov on Wed, 17/06/2015 - 12:17
"Gazprom" can now select a strategic partner in the "Baltic LNG" plant project worth up to 1 trillion roubles. According to "the Kommersant", two candidates are left, one of which is the Anglo-Dutch Shell. The agreement will be the first major investment by foreign companies in a new project into the Russian fuel and energy sector since the introduction of sanctions against Russia. And with technology and investment "Gazprom" will be able to finally move on to the real work on the prolonged project of its second LNG plant.
According to sources of "the Kommersant" in the gas industry, to at the meeting of the deputy chairman of "Gazprom" Vitaly Markelov be held today, which monopoly can decide about their partner on the construction of a gas liquefaction plant in the Baltic region. The most likely option is the Anglo-Dutch Shell, the second contender is "a consortium of Japanese companies", one of the interlocutors of "the Kommersant" states. It is expected that a strategic partner will receive up to 49% of the project and at the same time will be the technology supplier of large-scale gas liquefaction. If the candidate is approved, a memorandum of joining the project can be signed at the St. Petersburg Economic Forum this week, one of the interlocutors of "the Kommersant" state. Shell and "Gazprom" declined to comment.