Gazprom , russias monopoly oil company with a lot of cash

Accuracy score :
97%

Gazprom PJSC ADR  OGZPY

Summary (from latest annual report – 2015)

  • Total equity  : 158.84 billion USD
  • Market Cap is 47 billion USD ( last price of the stock is 4.10 USD)
  • Gazprom PJSC together with its subsidiaries, is engaged in the exploration, production, transportation, and sale of gas in the Russian Federation and other countries
  • Equity of total company increased from 147.24 billion USD in 2014 to 158.84 billion in 2015
  • Company has 20.38 billion USD in cash on account (from latest annual report)
  •  Total equity – cash on account = 158.84 billion USD – 20.38 billion USD = 138.46 billion USD
  • Company has 1.55 billion USD treasury stocks
  • In 2015 company had 41.93 billion USD long-term debt, short – term debt was 9.7 billion USD                                                                                                                                                            (In 2014 company had 6.97 billion USD short-term debt , long-term debt was 33.36 billion USD)
  • In 2015 annual report - total equity increased to 158.84 billion  USD from 147.24 billion USD in 2014, total debt was 51.63 billion USD in 2015)
  • Company's revenue increased in 2015 to 91.09 billion USD from 83.84 billion in 2014
  • Net income in 2015 was 11.8 billion USD, Net income in 2014 was 2.38 billion USD
  • In 2015 company paid 2.5 billion USD dividend to its shareholders

Gazprom PJSC ADR  Subsidiaries OGZPY

Gazprom PJSC together with its subsidiaries, is engaged in the exploration, production, transportation, and sale of gas in the Russian Federation and other countries. Gazprom was created in 1989 when the Soviet Ministry of Gas Industry was converted to a corporation, retaining all of its assets. Although it is a private company, the Russian Government holds a majority stake in the company. Gazprom is involved in the Russian Government's diplomatic efforts; distortions of gas prices, and access to pipelines.

Gazprom's production fields are located around the Gulf of Ob in Western Siberia. Plans have also been made to mine the Yamal Peninsula. Gazprom's gas transport system includes 158,200 kilometres of gas trunk lines. Projects include Nord Stream and South Stream.

Important dates for the company

  • In June 2005, Gazprombank, Gazpromivest Holding, Gazfond and Gazprom Finance B. V., subsidiaries of Gazprom, sold a 10.7399% share of their stock for $7 billion toRosneftegaz, a state owned company. Some analysts said the amount paid by Rosneftegaz for the stock was too low. The sale was completed by 25 December 2005. With the purchased stock and the thirty-eight percent share held by the State Property Committee, the Government of Russia gained control of Gazprom. The Government of Russia revoked the Gazprom twenty percent foreign ownership rule and the company became open to foreign investment
  • On 23 June 2007, the governments of Russia and Italy signed a memorandum of understanding towards a joint venture between Gazprom and Eni SpA to construct a 558-mile (900 km) gas pipeline to carry 1.05 trillion cubic feet (30 km3) gas per year from Russia to Europe
  • On 21 May 2014, in Shanghai, Gazprom and the China National Petroleum Corporation made a contract worth $400 billion over thirty years. The contract was for Gazprom to deliver 38 billion cubic meters of natural gas per year to China beginning in 2018
  • On 19 October 2015, Russian President Vladimir Putin and Israeli Prime Minister Benjamin Netanyahu agreed to allow Gazprom to develop the Leviathan gas fields with major concessions from Israel

Gazprom delivers gas to 25 European countries, the only major exceptions being Spain and Portugal. In 2015, Europe was the source of more than 40 percent of Gazprom's revenue.

  • Russian Federation division is worth 30 billion USD
  • Former Soviet Union division is worth 3.2 billion USD
  • Europe and other countries divisions are worth 13 billion USD

 

Gazprom is the largest joint-stock company in Russia. The total number of bank accounts holding 23,673,512,900 shares of Gazprom exceeds 470 thousand. Russian Government controls over 50 per cent of the Company’s shares

 

 

Gazprom  standalone subsidiaries and acquisitions :

  • Gazprom has several hundred subsidiaries in Russia and abroad which are owned and controlled directly or indirectly by the company
  • The company has subsidiaries in industrial sectors including finance, media and aviation
  • In April 2001, Gazprom acquired NTV, Russia's only nationwide state-independent television station from Vladimir Gusinsky's company, Media-Most holdings. In 2002, the Gazprom subsidiary Gazprom Media acquired all of Gusinsky's shares in companies held by Media-Most – worth 1 billion USD
  • In September 2005, Gazprom bought 72.633 percent of the oil company Sibneft for 13.01 billion USD. Sibneft was renamed Gazprom Neft. The purchase was aided by a $12 billion loan. Gazprom became Russia's largest company. On the day of the deal the company worth was valued at US$123.2 billion
  • In December 2006, Gazprom signed an agreement with Royal Dutch Shell, Mitsui and Mitsubishi, to take over fifty percent plus one share of Sakhalin Energy for 7.5 billion USD
  • In June 2007, TNK-BP, a subsidiary of BP plc, agreed to sell its stake in Kovykta field in Siberia to Gazprom for 770 million USD after the Government of Russia questioned BP's right to export gas from Russia
  • In late November 2013, Gazprom expanded its media interests by acquiring Profmedia from Vladimir Potanin – worth 760 million USD (ProfMedia’s value was 1.8 billion dollars in 2007)
  • In December 2014 the Group became the owner of 100 % of the interest in South Stream Transport B.V., the company responsible for the offshore part of the South Stream project. Until 29 December 2014, South Stream Transport B.V. was a joint project held by the Group (50 %), ENI International B.V. (20 %), EDF International S.A.S. (15 %) and Wintershall Holding GmbH (15 %). On 29 December 2014, the Group acquired the remaining 50 % of the shares of South Stream Transport B.V. from the minority shareholders for consideration of  750 million USD paid in cash
  • In 2015 Gazprom acquired Russia 2 TV channel frequency from VGTRK for 160 million USD
  • Gazprom has 35.5% of Gazprombank ordinary shares, the authorized capital of Bank GPB (JSC) amounts to RUB 190,234,277,000, and it is divided into 490,645,540 registered ordinary shares with RUB 50 par value
  • Gazprom subsidiaries in finance, media and aviation are worth 6 billion USD
  • Investments in associates and joint ventures in 2014 and 2015 was more than 20 billion USD

 

Total = 49.94 billion usd

 

  • In June 2014, Gazprom negotiated with the International Petroleum Investment Company (IPIC of Abu Dhabi) over a 24.9 percent stake in the Austrian oil and gas firm OMV
  • Gazprom has invested about 480 billion rubles ($20 billion) in new major projects in order to maintain supply. Nearly 37 percent of Gazprom's reserves are located in the Yamal Peninsula and in the Barents Sea

 

Opinion about the company

Fundamentally it is a good company and in the future we can expect its growth (Total debt is 51.6 billion USD, company has 20.38 billion USD in cash on account, ROE is around 7 %).

 

 

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