“Gazprom” prepared for the collapse of demand for gas

306

www.vsyako.netPhoto: Vasily Shaposhnikov / Kommersant

Because of the coronavirus pandemic and economic crisis, Gazprom is prepared to a sharp collapse of demand for gas exports. According to company estimates, the decline will amount to 16.4 percent. These figures were cited by the head of financial-economic Department of “Gazprom” Alexander Ivannikov, reports owned by Grigory Berezkin the RBC.

The average gas price for deliveries to foreign buyers may fall even further, with 210,6 USD per thousand cubic meters to 133 USD 37 per cent.

Forecast drop in annual revenue, the top Manager did not give. However, senior group Director for natural resources and commodities, Fitch Dmitry marinchenko indicates that if a scenario will come to pass, the revenue will fall from $ 42 billion to 22 billion, and profitability of export operations will be reduced to four or five times.

In a conference call with investors on results for the year 2019, Ivannikov noticed that the market situation is changing rapidly.

As explained by the head of the analysis Department of “Gazprom export” Andrey Zotov, who also participated in the fellowship, the summer gas prices in Europe could fall to $ 70 per thousand cubic meters, and in winter to reach 120-130 dollars.

The report of “Gazprom” for the year 2019 published yesterday, April 29. He witnessed a reduction in profits by 17 percent, to 1.2 trillion rubles. Revenue from sales declined 7 percent to 7.66 trillion.

The fine, which the company at the end of the year, he was forced to pay the Ukrainian “Naftogaz” to execute the decision of the Stockholm arbitration, led to the formation of negative cash flow in the amount of 189,5 billion.

Earlier it became known that in March, gas production in Russia fell by 12.3 percent compared to the same period last year. In January and February, before the start of the epidemic of coronavirus in Europe, the income of “Gazprom” from export collapsed two times, because of the abnormally warm winter, the increase in the supply of liquefied natural gas (LNG), including the us, and the completion of the European vaults.

Video, photo All from Russia.

LEAVE A REPLY

Please enter your comment!
Please enter your name here