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Gazprom is the world's largest gas company by reserves and the owner of Russia's Unified Gas Supply System: a network of trunk pipelines that physically connects the fields of Yamal and Western Siberia with consumers. Besides gas, the group produces oil and generates electricity. The shares trade on the Moscow Exchange under the ticker GAZP.
The company's business rests on three pillars, and they differ greatly in profitability. The first is gas exports: historically the most profitable part, where the price is linked to market quotations or to the formulas of long-term contracts, and the revenue comes in foreign currency. The second is supplies to the domestic market: the volumes are enormous, but the tariff is set by the state, and profitability there is fundamentally lower.
The third pillar is the oil and power businesses: oil production and refining through a subsidiary, as well as the generation of electricity and heat. After European exports were cut, their contribution to the overall result rose markedly — not because they grew themselves, but because the main part shrank.
A particular feature of the costs: the gas transmission system requires constant investment regardless of how much gas flows through it. A pipeline built for a certain flow does not become cheaper to maintain when volumes fall.
Fields in Western Siberia, Yamal and Eastern Siberia; supplies to the domestic market and for export.
The Unified Gas Supply System: trunk pipelines, compressor stations, underground storage facilities.
Production, refining and marketing of oil and petroleum products through a subsidiary.
Generating assets that produce electricity and heat, predominantly gas-fired.
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
The company produces natural gas, transports it through trunk pipelines and sells it to consumers in Russia and abroad. Besides gas, the group produces and refines oil, and also generates electricity and heat.
Control lies with the state: directly and through state-owned companies it holds more than half of the shares. The remaining shares trade on the exchange.
The export business brought in foreign-currency revenue at prices markedly higher than domestic ones, whereas on the domestic market the price is regulated by the state. The pipelines were built precisely for these flows, and redirecting them quickly in another direction is physically impossible.
The dividend policy provides for a payout of half of adjusted net profit, but the payment history has been interrupted: in certain years the shareholders' meeting decided not to make payments. The declared amounts and record dates are in the dividends section of the company card.