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Gazprom record profits amid gas crisis

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On Monday, Russian gas giant Gazprom announced a record third-quarter net profit. It was a surprise to investors giving the gas crisis context in Europe, caused by unusually low stockpiles.

Gazprom’s revenues increased by 70% year over year to 2.37 trillion rubles ($31.4 billion), a new high. “Gazprom continued to provide strong results, setting yet another financial record.”

Gazprom’s revenues in July-September surged by 70% year on year to 2.37 trillion rubles ($31.4 billion), a new high. “Gazprom has continued to report outstanding results, reaching a record financial performance once again,” said Famil Sadigov, vice head of the Russian state-controlled group’s management committee, in a statement.

Furthermore, he emphasized “the obvious impact of the situation on export markets”. He also predicted “even more excellent fourth-quarter performance in light of the current trajectory”.

Europe, which imports a third of its gas from Russia, has been dealing with rising gas costs for months. Indeed, demand has been rising as the global economy and Covid-19 situation improve.

The 2020 prolonged winter has depleted gas stockpiles. With not replenishment since then. Weather-related reductions in renewable energy supplies, such as wind, are blending to the mix. Some countries have attributed the price increase in part to Moscow’s desire to hasten the commissioning of the contentious Nord Stream 2 project. Russia disputes this and, as a result, casts doubt on European decisions.

According to Moscow, the EU has favored spot market purchases. Which are subject to price changes, over long-term contracts with Gazprom in recent years.

Expected dividend for 2021.

According to Sova Capital analyst Mitch Jennings, the Russian gas giant expects its dividend for 2021 to be at least 50 rubles per share, citing remarks made by Gazprom management to investors at a recent conference. If the proposal comes to fruition, this year’s dividend would be at least quadruple the previous high of 16.61 rubles per share, achieved in 2018.

As of 12:20 p.m. local time, Gazprom shares were 1.7 percent higher at 332.82 rubles, up 3.6 percent in Moscow trade.

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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