Page 118 - RusRPTDec20

9.2 ​Major corporate news 9.2.1​ Oil & gas corporate news
● Gazprom
Gazprom​ non-CIS exports reach record in October. ​Interfax has estimated, based on industry statistics, that Gazprom's gas exports to Europe and China rose to 17.5 bcm in October. This is Gazprom's highest ever non-CIS export volume for the month of October. Interfax highlights that although Gazprom's volumes increased, LNG supply to Europe decreased by 30% y/y and by 5% m/m to 6.0 bcm in October. According to the Interfax report, based on CDU TEK data, Gazprom's gas production increased by 2% y/y to 42.7 bcm. This is the first instance of monthly y/y production growth this year. Our view: The reported export volume in October implies 6% growth y/y. This is the second time the company has shown positive monthly y/y dynamics this year (the first one was 5% y/y growth in August). Adding 17.5 bcm to the 9m20 non-CIS export figure of 125.7 bcm puts the 10m20 export number at 143.2 bcm. If we assume that gas export volumes in November-December will be no lower than the average level for the last three years (at 37.4 bcm) it would put Gazprom's non-CIS export volumes above 180 bcm, or 6% above the upper end of the guidance range provided by the head of Gazprom's export unit two weeks ago (165-170 bcm). The company's recent performance supports our view that Gazprom's export guidance is overly conservative this year.
The management of Russian gas giant Gazprom has approved a RUB902.4bn ruble investment program for 2021​, the company said in a statement on Thursday. Capital investment is planned at RUB864.062bn. Borrowings were approved at RUB511.6bn (
Gazprom​ ​cuts gas business 2021 capex by 2%. ​The 2021 investment program of Gazprom's holding company has been set by the management at R902bn. This includes R864bn of capex, R21bn for purchases of noncurrent assets and R18bn in long-term financial investments, according to the company. The BoD is yet to review and approve the program. Our view: The holding company's budget represents investments in the gas business (including VAT). Given that the initial gas budget for this year was cut by 17% recently from R1,105bn to R922bn, the initial target for next year now suggests a modest 2% cut from this year's likely level. The indicated spending level is also in line with our model's capex assumption. However, we still see the news as positive, as it shows that the Gazprom management retains a conservative approach on capex despite the strong rebound in European gas prices. a
Gazprom​ reported its 9M20 RAS results on Friday, 13 November. ​The company reported a net loss of RUB 592bn, in part due to an increase in other
118 ​RUSSIA Country Report​ December 2020 www.intellinews.com