Page 14 - FSUOGM Week 34 2021

FSUOGM NEWS IN BRIEF FSUOGM

RUSSIA "However, the market’s reaction to reporting hour, exceeding the figures before
the results looks marred by the negative the accident at Gazprom's Urengoi plant
Gazprom Neft posts $10bn dynamics in crude prices," Sova analysts in early August, German gas transport
operator Gascade said on August 23.
wrote, while maintaining a Buy call on
revenues in 2Q21 Gazprom Neft shares. meters per hour between 16.00 and 17.00
Pumping increased to 2.7 million cubic

Gazprom Neft, the oil arm of Russian Moscow time from 1.5 million cubic meters
natural gas giant Gazprom, posted $9.8bn Deputy PM says oil spilt in per hour before and remained at this level
revenues under IFRS in 2Q21, in line with for three days.
consensus expectations, with EBITDA of Novorossiysk on lack of A fire broke out at Gazprom's Urengoi
$3bn and net income of $1.8bn. Earnings Condensate Treatment Plant and the
and bottom line were 14% and 2% above the port repairs facilities were shut down on August 5.
expectations. The accident temporarily halved gas
The company's free cash flow in 2Q21 The main reason behind an oil spill near supplies through the Yamal-Europe pipeline
was about $2.2bn, BCS Global Markets Novorossiysk was the lack of repairs at that dropped to 1 million cubic meters
estimated, up "massively on an abnormally the key facilities, Deputy Prime Minister of gas per hour. Later pumping went up
weak 1Q21 of +$0.6bn and the average Viktoria Abramchenko said on August 24. and down slightly with no significant
+$0.4bn/quarter the previous 6 periods "Long-term use without capital repairs improvement.
(which included a terrible -$1.1bn in of the buildings was the main reason of
COVID-affected 2Q20)". what has happened. This year we have
At the same time the capital expenditures changed the contractor, we did it in March. Hungary says ready for
were maintained in line with the average of The former contractor, the one who used
6 previous quarters at $1.3bn. Very strong the infrastructure, did not invest in it," new long-term deal with
FCF number and higher EBITDA lowered Abramchenko told reporters.
Net debt/EBITDA to 0.59x, much improved The spill happened on August 7 while Gazprom
on the 1.1x of 1Q21 and the about 1.2x oil was pumped to Greek oil tanker
average of the previous 5 quarters. Minerva Symphony by the first single-point Hungary is ready to conclude a new long-
BCS GM maintained a Buy call on buoy mooring unit of Caspian Pipeline term gas supply contract with Gazprom in
Gazprom Neft 's shares and suggested to Consortium. The company said then that autumn, Minister of Foreign Affairs and
focus on how the company will react to only 12 cubic meters of oil were spilled, and Trade of Hungary Peter Szijjarto said on
gradually relaxing OPEC+ production that the spill area is only 200 square meters. August 24.
constraints. The analysts also wonder “Our long-term gas supply contract with
whether Gazprom Neft will boost the short- Gazprom will expire soon, and we are ready
term gas output to help parent Gazprom EASTERN EUROPE to conclude a new one,” Szijjarto told his
meet high demand given the accident at its Russian counterpart Sergei Lavrov.
Urengoy condensate processing plant. Yamal-Europe gas pumping According to Szijjarto, signing of a
Sova Capital also welcomed strong new contract is already at its final stage.
numbers of Gazprom Neft in the reporting doubles since Urengoi The latest details will be discussed with
quarter, and estimated that the 1H21 Gazprom’s CEO Alexei Miller in St.
dividend could be around RUB 22.9/share, accident Petersburg on Monday.
implying a 5.5% yield and second only to “I think that we will be able to conclude
Lukoil private oil major in terms of interim The gas flow through the Yamal-Europe another mutually beneficial 15-year contract
yield. pipeline almost doubled in the last in autumn for the sake of Hungary’s energy

P14 www. NEWSBASE .com Week 34 25•August•2021