Page 139 - RusRPTNov21

9.2 Major corporate news 9.2.1 Oil & gas corporate news
● Gazprom
Gazprom reported its results for the first nine months of 2021. Production was up 16.6% YoY to 399.4bcm, ahead of the number reported in a press release on 18 October 2019, which included numbers for the record gas year 2018 (385.6bcm). Daily production was calculated at 1.4bcm per day in 9.5M21 vs. 1.2bcm for 9.5M20 and 1.3bcm for 9.5M18. Production in September was 1.363bcm per day and 1.374bcm per day in October 2020, Interfax reported.
Non-FSU exports for 9.5M21 were 152.2bcm, up 13% YoY but down 3% vs. the same period in 2018. If adjusting for China, to which we assume exports will be around 2.4-2.5bcm in 3Q21, this could put exports to Europe at around 152.2bcm, down 4% vs. the record gas year of 2018.
Gazprom also reported select increases in deliveries YoY to Turkey (+152.3%), Germany (+28.2%), Italy (+16.3%), Romania (+288.6%), Serbia (+112.1%), Bulgaria (+52.7%), Poland (+10%), Greece (+12.9%) and Finland (15.3%).
Gazprom noted that withdrawals from European underground storage started on Wednesday, 13 October vs. 12 October 2020. The start of the winter season began with 18.5bcm less gas in storage vs. 2020, and European underground storage is at its lowest level in years. Gazprom also stated that 71% of the gas withdrawn last year was replenished. The average temperature in Russia during the first 15 days of October was three degrees lower than in 2020, according to Russian Power System Operator, as reported by Interfax. GIE data shows European underground storage at 77.06% full as of 13 October vs. 95.37% full on the same date in 2020, 97.35% full in 2019 and 84.88% full in 2018.
Gazprom ’s Board of Directors has approved the increase in the investment programme of Gazprom Group’s parent company (gas business) from RUB902bn to RUB1.185tn. The PPE capex budget was increased to RUB1tn (from RUB0.86tn) and the acquisition funds to RUB61bn (from RUB21bn). Management also released a comment on the updated budget. The key points are as follows.
· Gazprom’s updated budget envisages EBITDA doubling y/y, although management expects actual EBITDA to exceed $45bn, given higher gas prices in 4Q21.
· The company’s new budget for 2021 assumes an average realised European export gas price of $270/kcm (up from the initial $170/kcm). At the same, management’s guidance for the realised
139 RUSSIA Country Report November 2021 www.intellinews.com