Page 104 - RusRPTJan22

9.2 Major corporate news 9.2.1 Oil & gas corporate news
● Gazprom
Gazprom had a stonkingly good year thanks to the gas crisis. It was criticised for not taking advantage of the soaring gas prices which passed the $2,000 per thousand cubic meters in December – its highest level ever – and is expected to end 2021 with financials at record levels: EBITDA of some RUB3.5tn ($48bn), net income in excess of RUB2tn ($27bn) and FCF of more than RUB1tn ($14bn).
Gazprom CEO Alexey Miller said Gazprom’s non-FSU exports will be the fourth-highest in history in 2021. Gazprom will produce 515bcm in 2021, which is up 62.2bcm or 13.7% YoY. Production in December reached 47.4bcm or 1.53bcm per day.
Non-FSU exports to Germany increased 5.6bcm YoY or 12.1% YoY to 51.4bcm, to Italy 4.1bcm or 19.7% YoY to 24.9bcm and to Turkey 10.5bcm or 125% YoY to 26.9bcm.
Domestic deliveries are up 29.7bcm YoY, which should bring them to around 277bcm, if using the figures provided in the company’s RAS results.
Gazprom Neft should produce more than 100mntoe in 2021, the highest number in history.
Exports to Europe and China at c. 177bcm for 2021, which is below the companies guidance of 183bcm.
The company will take advantage of this windfall to continue its never-ending building campaign: in 2021 capex will be RUB1.9tn, or some $25bn (excl. VAT). The company has already started to implement the 2022 investment programme.
At the same time it paid down debt so that by the end of 2021 net debt to EBITDA is to be below 1x, Gazprom’s Deputy Chairman of the Management Committee Famil Sadygov said in an interview at the end of 2021.
The 2022 company budget assumes an average export price of $250/kcm in 2022 (including Europe, China and the FSU), although the company thinks it is possible to achieve $280/kcm. Even if spot prices plummet, the realised export price in 2022 is to be above the 2021 level.
104 RUSSIA Country Report January 2022 www.intellinews.com