Page 12 - FSUOGM Week 27 2022

FSUOGM PROJECTS & COMPANIES FSUOGM

Gazprom opts against 2021 dividend,

triggering slump in share price

RUSSIA RUSSIA’S Gazprom announced on June 30 it regional gasification, in line with its commitment
had decided not to pay a dividend on its record to invest some RUB526bn by 2025 in expanding
The funds will go only profit last year, triggering a steep fall in its share the share of Russians with access to pipeline gas
to the government price. supply from the current 72%. The company is
instead of foreign The company, whose main owner is the Rus- also set to pay out an extra RUB416bn in min-
shareholders. sian state, said that “in the current situation” its eral extraction tax this year, under a draft bill that
shareholders had decided it was “not advisable” Russian lawmakers approved on June 30.
that it pay dividends on its 2021 income, which The company will also focus on preparing for
came in at a record RUB2.09 trillion ($29bn) on the upcoming heating season, although Russia’s
the back of soaring gas prices. underground gas storage facilities are already
Gazprom earlier this year pledged to pay well-stocked for the time of year, given reduc-
out RUB1.244 trillion in dividends from this tions in supply to Europe.
income, or RUB52.53 per share. Gazprom also faces pressure over the com-
The announcement led Gazprom’s share price ing years to invest in new infrastructure to access
to plunge 27%, although it caused the ruble to new gas customers, as its largest market, Europe,
strengthen further, given that foreign investors aims to cease all Russian gas imports by 2027.
typically convert Gazprom’s ruble-denominated Its flagship project is Power of Siberia 2, which
dividends into other currencies. The ruble is will lay a second pipeline to China, through
currently priced at about 54-55 to the US dollar, Mongolia, carrying up to 50bn cubic metres of
compared with a record low of nearly 136 to the gas annually. But Russia first needs to sign a gas
dollar on March 10. supply agreement with China underpinning its
Gazprom’s focus will instead shift to Russian construction. ™

P12 www. NEWSBASE .com Week 27 07•July•2022