Gazprom debt: structure, branches, financial condition

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:42

PJSC "Gazprom" is one of the largest corporations in the Russian Federation, engaged in the extraction, storage and transportation of raw materials. In 2017, Gazprom produced: 41.0 million tons of oil, 15.9 million tons of gas condensate, 471.0 billion cubic meters. m of natural and associated gas.

Despite the impressive figures showing the amount of raw materials produced and the company's income, Gazprom continues to experience financial problems. This is due to fluctuations in oil and gas prices, the disadvantageous position of the Russian Federation on the world stage, as well as geological and climatic features that greatly complicate the extraction of natural resources. Therefore, Gazprom's debt continues to grow.

Gazprom's financial condition

The financial statements of PJSC Gazprom show that in 2017 the company's total revenue amounted to about 4.313 trillion rubles. Revenues were higher compared to 2016, the total revenue of which amounted to only 3.934 trillion rubles.

In forceforeign policy pressure, problems in the European and Asian markets, as well as some illiterate decisions made by the management, the value of PJSC Gazprom has noticeably decreased and continues to fall. In 2008, the total value of Gazprom was $365.1 billion, in 2012 $302 billion, in 2014 $397 billion, such good performance became possible due to the implementation of a number of major projects, as well as a favorable political climate. And at the time of 2017, the total value of the company is approximately $50 billion. However, even after the hard times that have come after 2014, Gazprom continues to stay afloat, trying to implement a competent financial management and debt repayment policy, created taking into account previous mistakes.

Structure of Gazprom PJSC

Gazprom shares are owned by the following persons.

1. Federal Agency for State Administration. owns 38.37% of the shares.

2. JSC Rosneftegaz has approximately 10.97% of all shares.

3. Rosgazifikatsiya holds 0.89% of all Gazprom shares.

4. ADR holders own 25.20% of the shares.

5. Other individuals and legal entities hold 24.57% of all shares.

Gazprom investment program

The growth of Gazprom's debt and the lack of funds are connected, first of all, with investment projects, which, according to some experts, are unprofitable. For 2018 investmentGazprom's program is 1 trillion 496.328 billion rubles, which exceeds the investment budget for 2017 by 217.498 billion rubles. Such an increase in costs is associated with global projects that can simplify the process of transporting and liquefying natural gas, they are also a priority. The list of the largest investment projects of Gazprom PJSC is given below.

1. The Power of Siberia project will be able to ensure an unhindered supply of gas for Russian residents living in the Far East, as well as for its export to the People's Republic of China. The length of the "Power of Siberia" will be more than 3,000 km, and its export capacity will be about 38 billion cubic meters per year. The cost of the pipeline alone is 218 billion rubles.

2. Nord Stream 2 is an ambitious project that will allow exporting about 55 billion cubic meters of gas per year to Europe. The gas pipeline will have a length of about 1,200 km. The beginning of the pipeline was laid in the Leningrad region, and it will end in the region of Greifswald, a German province in the North of Germany. Everything is complicated by the fact that the pipeline will be laid along the bottom of the B altic Sea, running through the territorial waters of several states at once and having a special construction methodology. The cost of the pipeline is estimated at 115 billion rubles.

3. The Turkish Stream project will allow exporting about 31.5 billion cubic meters of gas per year to Turkey, South and South-Eastern Europe. The length of the pipeline starts from the compressor station"Russian" and ends off the coast of Turkey, the total length of the pipeline is estimated at 900 km. The cost of the pipeline is estimated at 182 billion rubles.

The rest of the investments are directed to projects located within the Russian Federation and engaged in the development of new deposits, as well as the transportation and storage of natural resources. Thus, in order to cover its own expenses, PJSC Gazprom is forced to borrow from other persons.

Gazprom's debt to Naftogaz

Gazprom owes about $2.56 billion to Naftogaz. This decision was made by the Stockholm Arbitration Court. Back in 2014, Gazprom and Naftogaz filed applications against each other in the Stockholm Arbitration Court. The Ukrainian partners were required to pay the debt for gas supplies from Russia (change in gas prices and cancellation of overpayments for it). The demands of the parties were only partially satisfied.

Gazprom's total and net debt

Despite a competent debt repayment policy, in 2017 the debt was a record. Over the years, Gazprom has taken debt from many sources, resulting in a net debt of 2.397 billion rubles. While the total debt reached 3,226.5 billion rubles. To make the picture clearer, it is worth noting that total or total debt is the sum of all long-term and short-term loans issued by creditors. ATwhile net debt is the total of all debt that has been adjusted by the company's resources and investments. Simply put, total debt is the sum of all loans, and net debt is the sum of loans minus funds that can be used to repay it.

For 2017, the repayment structure is as follows:

1. 27% of debt must be repaid in less than one year.

2. 15% of debt obligations have a maturity of 1-2 years.

3. 33% of the debt must be repaid within three to five years.

4. 25% of the total debt must be repaid over a period exceeding five years.

Gazprom and the pension fund

The unfavorable situation that has developed as a result of conflicts with Ukrainian partners, as well as the unenviable position of Russia in the European market and the instability of the economy, are forcing Gazprom to look for investors in the domestic market. The corporation borrowed more than 40 billion rubles to pay off external debt. And yet, Western investors bought back part of the investment papers, but only about 3-4% (about 1 billion). The rest of Gazprom's debts were paid off by pensioners who invested their finances in non-state pension funds. The amount is about 32 billion rubles, which is approximately 80% of all investments. And although Gazprom borrowed from pension savings, some investors consider their investments profitable.