Page 10 - FSUOGM Week 29 2021

FSUOGM PIPELINES & TRANSPORT FSUOGM

Gazprom reports record gas gains

in Europe, China

RUSSIA RUSSIAN energy giant Gazprom posted another China last year (excluding European trading
record in non-FSU European exports by mid- activities), BCS GM estimates Gazprom will
The post-coronavirus July, achieving 107.5bn cubic metres versus 108.9 gross closer to $45bn of exports in 2021.
recovery in the gas bcm seen in 2018 (previously Gazprom's best In a separate report, BCS GM published the
market has been swift export year on record), according to Interfax. results of an investor survey on the main Gaz-
and dramatic. As reported by NewsBase, Gazprom exported prom catalysts that showed that three main
record volumes of gas to Europe during the first future market movers for the stock remain the
half of the year, despite recent claims in the press launch of Nord Stream 2 pipeline, high gas prices
that the company has been withholding supply and the dividend policy of the company.
to jack up prices. "Both retail and institutional investors con-
"Gazprom’s export business keeps getting sider dividend policy, high European gas prices
better in 2021, with very high prices being sup- and the launch of Nord Stream-2 to be the key
ported by rising volumes as well, which are eas- drivers behind the stock at this moment," BCS
ing towards 2018’s record levels," BCS Global GM wrote.
Markets commented on July 19, noting that the Retail opinion on gas prices is evenly distrib-
2021 EBITDA estimate of $36bn "appears to uted between the price options in the poll, while
have some upside risk". a nearly equal percentage thinks unpredictable
BCS GM analysts also remind that Euro- weather will ultimately determine prices.
pean hub gas prices this year at well over $400 BCS GM notes that almost 25% of retail
per thousand cubic metres are at levels only investors expect gas prices to collapse back
seen once in history, in 2008. Coupled with below $250 per 1,000 cubic metres. Institutional
rising export volumes, these are expected to investors, however, clearly lean to prices being
boost the company’s earnings year on year in $300 per 1,000 cubic metres to $400 per 1,000
2021. cubic metres for the near term (about 38%) or
"Keep in mind that the current year export also throw up their hands on a prediction due
numbers are being helped by exports to China, to weather uncertainty (33%), but few of them
which did not exist in 2018," BCS GM also notes. anticipate a crash in gas prices, according to the
After grossing $27bn in exports to Europe and BCS GM poll. ™

P10 www. NEWSBASE .com Week 29 21•July•2021