Gazprom on Tuesday forecast higher output and profits for 2004, but investors took the news in stride, saying its fortunes hinged on the volatile price of oil.
The company said in a statement it would produce 541.9 billion cubic meters in 2004, or 10.2 bcm more than its planned output for 2003.
The higher output forecast pleased investors, who had previously heard from the firm that production would be stable.
"I think many investors even doubt Gazprom's ability to maintain the current output level, that is why this news is good for skeptics," Troika Dialog oil analyst Kaha Kiknavelidze said.
But investors took with a pinch of salt Gazprom's forecast of a rise in consolidated net profit to more than 200 billion rubles ($6.33 billion) in 2004, based on Russian accounting standards.
The state-controlled company forecast 2002 net profit at 102.5 billion rubles and said it saw that figure roughly doubling in 2003.
However, Kiknavelidze said it was premature to speculate about the 2004 results given the fluctuations in the price of oil -- the threat of war in Iraq is a major uncertainty for the oil outlook. Gas prices follow oil prices with a lag of six to nine months.
Pavel Naumenko, a trader at Renaissance Capital, said the market was digesting Gazprom's news to see whether a recent rise of 20 percent in the stock was justified.
The company said in a statement it would produce 541.9 billion cubic meters in 2004, or 10.2 bcm more than its planned output for 2003.
The higher output forecast pleased investors, who had previously heard from the firm that production would be stable.
"I think many investors even doubt Gazprom's ability to maintain the current output level, that is why this news is good for skeptics," Troika Dialog oil analyst Kaha Kiknavelidze said.
But investors took with a pinch of salt Gazprom's forecast of a rise in consolidated net profit to more than 200 billion rubles ($6.33 billion) in 2004, based on Russian accounting standards.
The state-controlled company forecast 2002 net profit at 102.5 billion rubles and said it saw that figure roughly doubling in 2003.
However, Kiknavelidze said it was premature to speculate about the 2004 results given the fluctuations in the price of oil -- the threat of war in Iraq is a major uncertainty for the oil outlook. Gas prices follow oil prices with a lag of six to nine months.
Pavel Naumenko, a trader at Renaissance Capital, said the market was digesting Gazprom's news to see whether a recent rise of 20 percent in the stock was justified.