Page 11 - FSUOGM Week 18 2022

FSUOGM PERFORMANCE FSUOGM

The company went to say that it had increased banning Russian corporate issuers from list-
the volume of gas delivered to China via the ing shares of depository receipts abroad, while
Power of Siberia pipeline network by 60% y/y in also cancelling any dividends or voting rights
the January-April period. It did not reveal how on foreign shares. An exemption from the ban
much gas it had exported to the Chinese mar- could be specifically granted by a government
ket in the first four months of the year, though it commission.
noted that Power of Siberia had carried 4.1 bcm Vedomosti daily reported that Gazprom
of gas in 2020 and 10 bcm in 2021. had sought such approval but was refused. The
The system is slated to reach its full capacity company had to notify the Bank of New York
of 38 bcm per year by 2025, it added. Meanwhile, Mellon that guarantees Gazprom’s depository
Moscow and Beijing signed a deal in February of receipts that it will have to terminate the receipt
this year on the construction of another pipeline, programme.
Power of Siberia 2, that could deliver another 10 The shareholders will be able to convert the
bcm per year of Russian gas to China starting in receipts into ordinary shares, but it is yet unclear
2026, Gazprom noted. whether a dividend will be paid on them, and in
what currency.
Profits up in 2021 Overall, in the IFRS report Gazprom com-
Meanwhile, Gazprom has also reported that mented that the company is assessing how the
it posted a record-high 13-fold year-on-year Western sanctions for Russia’s military invasion
profit jump in 2021 to RUB2.1 trillion under of Ukraine will affect the company, and does not
IFRS, with revenues of RUB10.2 trillion and an see risks for the “continuity of its operations”.
EBITDA rise of 151% to RUB3.7 trillion. Prior to the invasion, during the 2021 Investor
Prior to Russia’s military invasion of Ukraine, Day Gazprom brought a material improvement
Gazprom was posting record-high net income in the dividend, an emerging focus on ESG
throughout 2021. The company cashed in on a issues and a noticeable improvement in corpo-
strong recovery in gas prices in Europe due to rate governance. ™
increased economic activity, a hot summer and
greater gas injection into storage and supply
remaining constrained.
Previously, Gazprom had pledged to pay
50% of IFRS net profit in dividends, which
could translate into RUB50 per share dividends,
Kommersant daily estimated. However, it is not
yet clear whether Gazprom will maintain its
dividend policy and whether the holders of for-
merly London and Singapore-traded receipts of
the company will be eligible for one.
Separate reports claimed that Gazprom will
have to remove its foreign listing, following the
refusal by the special government commis-
sion to allow the Russian pipeline gas exports
monopoly to maintain listing abroad.
Last month, the Kremlin passed a bill Gazprom’s net income reached record highs throughout 2021 (Photo: Gazprom)

POLICY
Hungary: Energy security top priority when

weighing EU sanctions on Russian energy

HUNGARY’S position that energy security from countries with greater dependence on Rus-
should be the real focus when deciding on sanc- sian energy sources.
tions against Russia remains unchanged, said Germany’s Economy Minister Robert
state secretary for energy policy Attila Steiner, Habeck hinted that some kind of compromise
who represented Hungary at the meeting of EU could be reached with countries that oppose
energy ministers in Brussels on May 2. extending sanctions to the energy sector. Hun-
EU energy ministers discussed the possibil- gary and Slovakia could get some form of relief
ity of extending sanctions to include Russian from the decision, as they are the most depend-
oil exports, a move that has met with resistance ent on Russian crude oil, Steiner said.

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