Russia is likely to expect stable consumption of gas by European consumers – expert

0
125

According to the results of 2013, Gazprom has become the largest public company in the world. As is written in the report, financial indicators in international standards have brought Gazprom to the first place. The profits in the company’s main activities – before taxes, interests and amortization – have grown by 22%. The indicator in monetary terms has exceeded $56bln (2trln roubles). Gazprom has left behind its chief competitors, such as Chinese Petrochina and US ExxonMobil and Apple. In the previous year the Russian holding only ranked third in the rating.

Gazprom’s good financial indicators were provided by an advantageous situation that shaped last year, analysts point out. The gas holding sold record volumes of natural gas in its principal trading market – which is the whole of Europe – in the last 10 years. Director of the power department of the Institute of Power Industry and Finances Alexey Gromov says that in spite of the increased demand Gazprom fully provided all its consumers with Russian gas.

“In the western direction Russia has managed to carry out all long-term gas contracts that were signed with European countries for 180bln cubic metres. 162bln cubic metres were delivered, which is a very good figure. Russia is likely to expect stable consumption of gas by European consumers.”

Experts believe that Gazprom has every chance to maintain leadership in profits. First of all, the company has a large resource potential. Secondly, the price factor plays an important role. The trend of the last months is that the gas price remains high. For any gas company the higher the fuel price the higher the profits at the end of the year. Speaking about Gazprom’s strategies, the eastern direction is very promising now, chief strategist of the BKS group Maxim Shein says.

“We can see a promising eastward direction. Gazprom is soon expected to sign a contract with Chinese partners, which will also boost the company’s financial status and allow Gazprom to maintain the world’s leading position in financial indicators. Let me remind you that Gazprom already took the first place in the world among public companies but it only concerned net profits and it was in 2011.”

According to analysts, Gazprom is most likely to maintain last year’s volume of deliveries. Diversification of deliveries for Europe is a long-range plan and if we mean the near future – the next few weeks, months and even years – Gazprom’s market share in Europe is unlikely to drop. Gazprom remains the most reliable supplier of natural gas to the Old World. Europe will never find a worthy equivalent for Russian gas in the same volumes, no matter that European officials keep complaining that Russian gas is too expensive. At the same time, gas prices are half as high and sometimes twice as high in the Asian-Pacific Region. In Japan the price of 1,000 cubic metres reaches $600-700.

LEAVE A REPLY

Please enter your comment!
Please enter your name here