Gazprom is the world’s leading extractor of natural gas. The company is based in Moscow, Russia.
Gazprom was formed in 1989 after the Ministry of Gas Industry of the Soviet Union transformed into a corporation. Since the creation the company it has slowly become more and more privatized, however, the Russian government still controls many aspects of the company.
As of 2014, Gazprom holds the world’s largest natural gas reserves – accounting for 14 percent and 74 percent of the global and Russian gas output respectively.
It also owns the largest gas transmission network – the Unified Gas Supply System of Russia – which is over 168 thousand kilometers long. In 2012 the company produced 487.0 billion cubic meters of gas.
Gazprom is currently operating large-scale projects to extract gas resources in: the Yamal Peninsula, the Arctic Shelf, Eastern Siberia, as well as the Far East.
Gazprom shares are traded in Moscow, London, Berlin and Frankfurt Stock Exchanges, as well as being available to buy in the form of American Depositary Receipts.
Gazprom – Business Focus
Gazprom focuses on: gas production, oil production, coalbed methane (CBM) development, expanding gas transmission systems, making gas purchases, and supplying gas and other energy products to consumers.
In 2012 the Group sold 466.8 billion cubic meters of gas.
Gazprom claims that its strategic goal is “to become a leader among global energy companies by developing new markets, diversifying business activities and securing the reliability of supplies.”
Diversifying: According to the company, “the oil business development and competitive presence in the power generation industry are the strategic goals of Gazprom.” By 2020 the company’s oil business development strategy should push annual production to 100 million tons of oil equivalent.
Gazprom – Company Overview
- Chairman: Viktor Zubkov
- CEO: Alexei Miller
- Type: Public (OAO)
- Headquarters: Moscow, Russia
- Employees: 400,000 (approximately)
- Traded as: MCX: GAZP – LSE: OGZD – FWB: GAZ – OTCQX: GZPFY
Gazprom – Financial Results
| Key figures (million RR) | 2011 | 2012 |
| Net sales | 4,637,090 | 4,764,411 |
| Sales profit | 1,656,843 | 1,289,176 |
| Net profit | 1,342,442 | 1,210,566 |
| Net assets | 7,760,991 | 8,701,094 |
| Short-term borrowings | 1,309,255 | 1,489,817 |
| Long-term borrowings | 1,830,450 | 1,877,228 |
| Capital expenditures | 1,628,109 | 1,535,927 |
| (RR) | 2011 | 2012 |
| Net assets per share | 327.8 | 367.5 |
| Earnings per share | 56.95 | 51.53 |
| Dividends per share | 8.97 | 5.99 |
| (%) | 2011 | 2012 |
| Return on equity | 19.1 | 14.9 |
| Return on assets | 13.7 | 10.9 |
| Return on sales | 35.7 | 27.1 |
| Debt to capital ratio | 16.6 | 14.7 |
Company Developments
Gazprom and Shell sign roadmap for third liquefied natural gas (LNG) train of Sakhalin II project
Alexey Miller said:
“The global LNG market is booming – primarily in Asian countries. Novel LNG production capacities are the key to achieving a strong position in this market.”
Ben van Beurden, Chief Executive Officer of Shell commented:
“We welcome the sequential approach of our strategic partner Gazprom to expanding the LNG plant in the Prigorodnoye settlement. The third train will help confirm the status of the Sakhalin II project as a reliable energy supplier to the Asia-Pacific region.”