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bne Invest
July 26, 2019 www.intellinews.com I Page 10
Gazprom cashes in on rally with SPO of 2.93% of capital
Russian natural gas giant Gazprom will have
its subsidiaries Gazprom Gerosgaz Holdings BV (Netherlands) and Rosingaz Limited (Cyprus) place 693mn shares of the company or 2.93%
of the share capital on Moscow Exchange (Moex), the company said on July 25.
Currently the stake is valued at RUB147bn ($2.3bn). With the SPO Gazprom has cashed in on the recent rally of its shares. As reported by bne IntelliNews, capitalisation of Gazprom on Moex topped RUB6 trillion in July, reaching its highest since August 2008 and extending its lead as Russia’s most valuable company over rival state-owned Sberbank.
Upon the announcement the shares dived by 2.8%, but then recovered, putting the capitalisation of
Gazprom at RUB5.33 trillion as of 15:30 MSK.
Traders and analysts told Vedomosti daily that while the usual reaction would be a decline in the share price, the recovery indicates that the market expects the SPO to be absorbed by a limited num- ber of investors and not have the stake spill over to the trading community.
"Given that there was no official preparation for the placement of such size, these shares will be distributed among several buyers and will not create an overhang risk," BCS Global Market commented on July 25.
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Profit of Russian LNG runner-up Novatek soars six-fold in 1H19
Russia's second-largest natural gas producer and liquefied natural gas (LNG) runner-up Novatek posted RUB451bn ($7bn) net IFRS profit in 1H19, soaring six-fold year on year. Net profit jumped thanks to booking the RUB309bn sale of 10% of the company's second LNG project Arctic LNG-2, as well as non-cash currency gains, Novatek commented.
As reported by bne IntelliNews, Novatek closed the deal to sell 30% in its next LNG project to Chinese and Japanese investors, following a 10% sale to its French strategic partner, energy major Total.
period to RUB234bn, with revenues of RUB452bn growing by 21%. The gain in revenues and earnings is linked by the company its launch of the second and the third stage of its first LNG plant Yamal.
" Despite a drop in gas sales and weak LNG pricing environment, Ebitda grew 8% quarter on quarter and FCF reached a record high thanks to dividends from Arcticgas and interest received from Yamal LNG," BCS Global Markets commented on July 25.
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Novatek's Ebitda gained 32% y/y in the reporting