OAO Gazprom – Company Information

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 Рaccounting for 14 percent and 74 percent of the global and Russian gas output respectively.

It also owns the largest gas transmission network ‚Ästthe 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:

‚ÄúThe global LNG market is¬†booming¬†‚Äď 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:

‚ÄúWe¬†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.”