Support The Moscow Times!

Gazprom Stock Hits 3-Year Low

Gazprom's stock hit a three-year low, making it one of the cheapest oil and gas companies in the world.  

The company's shares fell Tuesday but rose 2.8 percent Wednesday on the Moscow Exchange, closing at 137.18 rubles ($4.56) and sending the state-owned giant's capitalization to $108 billion.

The company's share price has tumbled almost 30 percent in a year, analysts at UBS said. For comparison, ExxonMobil is valued at $406.4 billion, Petrochina at $330.1 billion and Shell at $262.5 billion, Vedomosti reported.

Analysts attributed the sharp decline in part to market nervousness about ballooning capital expenditures. The company originally planned to spend $777 billion in 2012, but it confirmed outlays of $975 billion in October.

More important, however, are falling dividends, said UBS analyst Konstantin Cherepanov. Gazprom paid out 166 to 189 billion rubles, or about 7 to 8 rubles per share, in 2012, down from a record 212 billion rubles in dividends in 2011.

Gazprom has been facing difficulties both at home and abroad in recent years, with European clients seeking to renegotiate long-term supply contracts and rival Novatek proving an increasingly aggressive competitor in the domestic market.

Related articles:

Read more

Independent journalism isn’t dead. You can help keep it alive.

As the only remaining independent, English-language news source reporting from Russia, The Moscow Times plays a critical role in connecting Russia to the world.

Editorial decisions are made entirely by journalists in our newsroom, who adhere to the highest ethical standards. We fearlessly cover issues that are often considered off-limits or taboo in Russia, from domestic violence and LGBT issues to the climate crisis and a secretive nuclear blast that exposed unknowing doctors to radiation.

As we approach the holiday season, please consider making a one-time donation — or better still a recurring donation — to The Moscow Times to help us continue producing vital, high-quality journalism about the world’s largest country.