Yesterday, 8:52 AM
- Gazprom (OTCPK:OGZPY) is poised to sell a three-year euro-denominated bond, its first European debt sale this year, WSJ reports, following the issue earlier this week of a $1B bond by Russian mining firm Norilsk Nickel.
- The bond issues come as some investors take encouragement from a perceived easing of tensions in Ukraine, which could reduce the likelihood of further international sanctions being imposed on Russian companies.
- WSJ says pricing guidance on the deal suggests that Gazprom will pay an interest rate of 4.75%-4.875% on its bond.
Wed, Oct. 7, 3:29 PM
- Gazprom (OTCPK:OGZPY) raises its forecast for 2015 gas exports to 159B-160B cm based on stronger than expected Q2 and Q3 results, but also says it may delay the TurkStream pipeline to send gas to southern and central Europe by a year, Deputy CEO Alexander Medvedev says.
- The Russian gas group plans two additional pipelines to send gas to Europe - Nord Stream 2 across the Baltic Sea, and TurkStream across the Black Sea - but while Nord Stream 2 project has been gaining speed, TurkStream has seen its envisaged capacity halved and is facing a construction delay, possibly to year-end 2017, Medvedev says.
- Gazprom had raised its forecast for natural gas exports to Europe and Turkey just last month to 158B cm in 2015 from a previous estimate of 153B-155B cm, which was based on Q2 results.
Fri, Oct. 2, 9:59 AM
- Russia's Gazprom (OTCPK:OGZPY) says it exported 41.4B cm of gas to Europe and Turkey during Q3, up 23% Y/Y; in September, gas exports stood at 13.3B cm, up 24% Y/Y.
- Germany, the largest buyer of Russian gas, increased purchases by 19% to 11.2B cm, and Italy boosted intake by 69% to 7B cm.
- Gazprom also begins sending gas supplies to Azerbaijan at the pace of ~6M cm/day.
Mon, Sep. 28, 2:57 PM
- Gazprom (OTCPK:OGZPY) says European Union charges that the company hindered competition and charged unfair prices in Eastern Europe are “economically and legally unfounded" while urging European regulators to continue talks.
- In a statement of objections, Gazprom says it believed the European Commission had used a wrong methodology in its investigation against the company while expressing a desire to "settle the case on mutually acceptable ground, taking into account the arguments presented in our response.”
- Gazprom last week offered concessions in a bid to settle the European Union's charges in a move that could help the company avoid fines totaling billions of dollars.
Sat, Sep. 26, 1:15 AM
- Russia and Ukraine finally reach agreement on supplies of natural gas to Ukraine for the coming winter, Russia's energy minister says.
- The deal gives Ukraine a price discount determined quarterly, with the final rate close to the same as for neighboring Poland, and provides gas for six months ending in March 2016.
- The EU, which gets ~10% of its gas through Ukrainian pipelines from Russia, brokered the deal to resume gas flows halted in July over a pricing dispute; the EU's eastern members suffered shortfalls at least twice in the past decade during similar standoffs between the two countries.
- Russia will offer Ukraine gas at ~$227 per 1,000 cubic meters through December; Gazprom (OTCPK:OGZPY) has estimated the price before discount at $252.
- Ukraine agrees to inject 2B cubic meters of Russian gas into underground storage sites on its territory to help stockpile supplies for EU countries.
- The agreement still needs to be formally approved by the governments in Moscow and Kiev.
- ETFs: RSX, RUSL, RUSS, ERUS, RBL
Mon, Sep. 21, 10:23 AM
- Gazprom (OTCPK:OGZPY) reportedly is looking for an out-of-court settlement with European antitrust authorities over charges of abusing its dominant market position in many countries.
- Gazprom has sent proposals to the European Commission discussing such a settlement just days before a deadline to respond to charges that followed a two-year investigation, according to Russia’s Interfax news agency.
- The commission filed formal charges against Gazprom in April, claiming it was hindering competition and charging unfair prices in some central and eastern European countries in breach of EU antitrust rules.
Fri, Sep. 11, 12:18 PM
- Eastern European nations set to lose billions of dollars in natural gas transit fees criticize the latest agreement between western European companies including Royal Dutch Shell (RDS.A, RDS.B), Germany’s EON (OTCQX:EONGY) to Paris-based Engie (OTCPK:ENGIY) for a pipeline deal with Russia's (OTCPK:OGZPY) that will circumvent Ukraine.
- The companies signed an agreement last week to expand Nord Stream by 55B cm/year, which would double its capacity to nearly 30% of current EU demand; Ukraine is set to lose $2B/year in transit fees while Slovakia could lose hundreds of millions of euros.
- Russia now ships about one third of its Europe-bound gas via Ukraine, down from two-thirds in 2011 when the Nord Stream pipeline under the Baltic Sea started supplying Germany directly; Nord Stream-2 is set to start deliveries to Europe in 2019, when the current agreement between Russia and Ukraine on gas transit ends.
Thu, Sep. 10, 2:40 PM
- Gazprom (OTCPK:OGZPY) is downgraded to Neutral from Buy at Citigroup, which says earnings are at risk in the low commodity price environment, and any dividend increase likely will be delayed.
- Citi’s commodities team sees oil in the low $50s through 2016, and the firm estimates that Gazprom will generate less than $30B/year of EBITDA in 2015-17, a level not seen in a decade; Gazprom should have enough cash to fund priority projects, but a dividend boost likely gets pushed beyond 2017, Citi says.
- However, Citi likes Lukoil (OTCPK:LUKOY, OTC:LUKOF), even though it is a crowded trade because of its double-digit dividend growth, with an interim payout due sometime this fall, being a potential catalyst; anything less than a dividend of $1.13/ADR would disappoint, the firm says.
Fri, Sep. 4, 11:29 AM
- Gazprom (OTCPK:OGZPY) signs a shareholder agreement with its European partners on the development of the second phase of the Nord Stream gas pipeline system in the Baltic Sea to increase gas supplies to the European Union, moving forward on an expansion previously opposed by EU authorities.
- The project would be developed by a new company in which Gazprom holds a 51% stake; Royal Dutch Shell (RDS.A, RDS.B), E.ON (OTCQX:EONGY), OMV (OTC:OMVJF) and BASF (OTCQX:BASFY) each would get a 10% stake and ENGIE (OTCPK:ENGIY) the remaining 9%.
- Under the proposed expansion, two more lines would be added to the existing network running to the German coast, bringing annual net aggregate capacity to 1.9T cf of natural gas.
- Earlier: BASF, Gazprom to complete asset swap deal
- Earlier: YPF, Gazprom sign deal to develop gas projects in Argentina
Fri, Sep. 4, 9:11 AM
- YPF and Gazprom (OTCPK:OGZPY) sign a framework agreement that could lead to joint development of unconventional gas projects in Argentina.
- YPF is seeking partners to finance development of the huge but barely tapped Vaca Muerta shale formation that contains at least 23B barrels of oil, while Russia's Gazprom looks to expand oil and gas projects around the world.
- Although the companies did not discuss numbers, YPF hopes that a deal with Gazprom could eventually become similar in scale to multi-billion dollar joint ventures already in place with Chevron and Petronas.
Fri, Sep. 4, 7:01 AM
- BASF (OTCQX:BASFY) Gazprom (OTCPK:OGZPY) have agreed to complete an asset-swap deal signed in December 2013 but called off late last year following Russia's annexation of the Crimea region.
- As previously planned, BASF will exit the gas-trading and -storage business of its subsidiary Wintershall and will further expand its production of oil and gas.
- Gazprom will acquire BASF's natural-gas trading business and will also get a 50% share in BASF’s North Sea oil exploration and production unit.
- The swap was already approved by the European Commission at the beginning of December 2013.
Mon, Aug. 31, 12:45 PM
- Gazprom (OTCPK:OGZPY) is preparing a deal with China to build a pipeline near the Pacific coast, and plans to sign a memorandum of understanding about supplying gas to China through a pipeline from the country’s Far East during Pres. Putin’s visit to Beijing this week, according to a Kremlin aide.
- Russia last year reached a $400B deal to supply gas to China from east Siberia, and Gazprom planned to follow that accord with another 30-year contract to supply gas from west Siberia; while Gazprom said last week that talks about the western project are on track, analysts say the Far Eastern link has a better chance.
Thu, Aug. 13, 12:57 PM
- Gazprom's (OTCPK:OGZPY) oil unit says Q2 profit rose 47% Y/Y to 73.2B rubles ($1.1B) from 49.8B rubles in the year-ago quarter, citing higher production as the state-run company ramps up projects in Siberia, Arctic waters and Iraq.
- However, sales fell 1.4% to 423.2B rubles.
- Russian oil producers have been able to shrug off the global crude price slump as tax rates adjust to the weaker market while ruble depreciation has cut the cost of services.
- Q2 hydrocarbon output totaled 146.9M boe, up 25% Y/Y, thanks to increases at mature fields, recently launched fields and assets consolidation.
- Gazprom forecasts hydrocarbon output growing by no less than 10% in 2015.
Mon, Aug. 10, 2:43 PM
- Gazprom's (OTCPK:OGZPY) 30-year contract for gas supplies to China, signed with much fanfare in May 2014 amid talk of $400B worth of gas deliveries, was based on an optimistic view of the oil market and offers no protection in the event of a prolonged period of low prices, the Russian company says.
- Oil prices have since fallen by more than half, potentially destroying the economics of the project, whose development cost Gazprom has estimated at $55B.
- Gazprom confirms the gas price under the contract with CNPC would be linked to a basket of oil product benchmarks; analysts estimate the gas price implied by the contract was ~$350/M cm when it was signed, and given the 50% drop in oil prices since then, it could be as low as $175/M cm - "clearly a loss-making level," says Ildar Davletshin, oil and gas analyst at Renaissance Capital in Moscow.
Mon, Aug. 10, 8:22 AM
- Gazprom (OTCPK:OGZPY) says its FQ1 net profit surged 71% Y/Y to 382B rubles ($5.97B), exceeding analyst estimates, as weakness in the ruble more than offset a drop in sales volumes to Europe.
- Revenue for the quarter rose 5.7% Y/Y to 1.65T rubles despite a 10% fall in sales volume, with the average price of foreign sales soaring amid the weak ruble; shipments to Europe fell 16% to 39.1B cm, and volumes to former Soviet countries and domestic customers also fell.
- While gas prices in Europe fell 24%to $284.2 per 1,000 cm during the quarter, the same figure in ruble terms rose 37%.
- Analysts say the quarter is likely to be the year's best for Gazprom, with the price of gas for European customers expected to fall in H2, as it is tied to the price of oil, which has plunged in recent months.
Fri, Aug. 7, 2:42 PM
- The U.S. has added one of Gazprom's (OTCPK:OGZPY) largest offshore oil and gas fields, potentially a supply source for the expansion of Russia’s only liquefied natural gas plant, to its list of energy industry sanctions prompted by Russia's actions in Ukraine.
- Adding the Yuzhno-Kirinskoye field to the list means a license will be required for exports, re-exports or transfers of oil from that location.
- Gazprom has said the field would feed new capacity at the Sakhalin-2 LNG plant, the only such facility in Russia; Royal Dutch Shell (RDS.A, RDS.B) holds 27.5% of the project, and said last week it is discussing gaining access to Yuzhno-Kirinskoye, part of the Sakhalin-3 project, in a potential asset swap with Gazprom.
OGZPY vs. ETF Alternatives
Gazprom extracts, transports, stores and sells natural gas. The company is the successor to the State-owned company. Gazprom owns and operates Russia's Unified Gas Supply System. The company has a monopoly in supplying gas in the Russian Federation, and exports natural gas to Western Europe.
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