Dividends, Europe and China
“Gazprom” will provide the largest dividend payouts among Russian public companies as in absolute value, and volume of budget revenues,” — said predpravleniya “Gazprom” Alexey Miller, opening the annual meeting of shareholders of the company in Moscow, which is traditionally held in the street Nametkina.
For 2015 the shareholders of “Gazprom” decided to pay dividends from calculation of 7.89 rubles. per share, or about 187 billion rubles in total (about 24% of profit under IFRS, or about 50% of the adjusted net profit under RAS). This is 9.6% higher than it was at the end of 2014. “This recommendation provides the optimal balance of dividends and investment in business development and meet our obligations under the safeguarding of shareholders’ interests,” said Miller. The state (through the Federal property management Agency and “Rosneftegaz” will receive 94 billion rubles of dividends.
The scale of the company “Rosneft” will pay to its shareholders 125 billion rubles (35% of profit under IFRS), of which “Rosneftegaz” — 87 billion rubles of Dividends companies would be even higher if they did not receive exceptions to the rule to direct for payments to shareholders 50% of net profit under IFRS: Gazprom in this case would have to pay 393,5 billion rubles, “Rosneft” — 178,6 billion.
But “Gazprom” in 2015, was able to maintain the necessary funding of all major investment projects in contrast to some global competitors, says Miller. “Challenging market conditions “Gazprom” pursued a conservative financial policy, which has allowed us to maintain a strong financial position, low debt and significant liquidity,” said he. In order to implement large-scale projects, the company is expanding cooperation with the Russian manufacturers of the equipment in the framework of import substitution. As a result, the volume of purchases “Gazprom” the share of Russian producers is around 95%, while the share of pipe products — 99.6% and soon reaches 100%.
Revenues from sales of gas in far abroad (primarily in Europe) at the end of 2015 exceeded 2 trillion rubles, said Miller. Besides, last year the company achieved a record share of supplies to European countries — 31%, against 30.2 per cent a year earlier. In foreign countries, was delivered of 158.6 billion cubic meters this year, the company expects a new record of supply — not less than 165 billion cubic meters, said the Chairman of “Gazprom” Alexander Medvedev. Most likely, this forecast will be exceeded: “the Demand of Western Europe revived, including due to the price situation”. Earlier it was reported that the average export price “Gazprom” in 2015 may be reduced from $234 to $170 for 1 thousand cubic meters.
“Gazprom” has agreed with Anglo-Dutch Shell on the extension of the project “Sakhalin-2″ (2015 produced 10.8 million tonnes of liquefied natural gas, LNG) and explores the prospects for a new LNG project, Baltic LNG” in Ust-Luga (will produce 10 million tons of LNG per year), ” Miller said. These projects will increase the group share in the global LNG market to 10%, he added.
But the Chinese market remains the most attractive for exporters, recalled Miller. According to forecasts of Chinese experts, in 2030 it will reach 300 billion cubic meters per year, he said. In order to supply gas to China “Gazprom” to build Power of Siberia. And recently during the visit of President Vladimir Putin in Beijing the company signed a Memorandum of understanding in the field of underground gas storage and gas generation in China. “In short, Gazprom is to the East and this makes the gas market more and more global”, he concluded.
“The project “Power of Siberia” is in accordance with the contract; the deadline — between 2019 and 2021, he depends on the willingness of the Chinese gas transportation system,” — said Alexander Medvedev. According to him, this year will be built 400 km of the pipe and no risk of gap implementation time.” On Thursday morning, the CEO of the customer of building — “Gazprom transgaz Tomsk” Anatoly Titov has informed “Interfax” that we have built some 170 km “Power of Siberia”. Its total length will be about 3 thousand km.
Today Depositary receipts “Gazprom” are among the ten most liquid Depositary receipts of more than 4,000 companies from 72 countries, said during a meeting of the shareholders representative the Bank of New York Mellon (Depositary receipts for these). It is the most liquid receipts in Russia, he added. However, in the beginning of June “Gazprom” has lost the status of most expensive companies in Russia behind Rosneft. Thursday on the Moscow stock exchange “Rosneft” cost of 3.49 trillion rubles, “Gazprom” — 3,33 trillion rubles.
Two Ministers and remuneration
Just the agenda of the meeting of shareholders was 15 questions, including the approval of accounts, dividend, re-election of the Board of Directors, the approval of the remuneration of its members, the approval of amendments to the Charter and regulations on the management Board, the Board of Directors and their leadership. In addition, shareholders of gas monopoly will approve major transactions and interested party transactions, including agreements on credit with several Russian banks, as well as contracts with subsidiary companies and natural gas consumers. This year the Board of Directors consisting of 11 members came from two Federal Ministers — in addition to energy Minister Alexander Novak, who won a seat in the Council in July 2015, he was elected Minister of economic development Alexei Ulyukayev. But in the new composition of the Council was the ex-Minister of property relations of Russia, Farid Gazizullin, who was a member of the Board since 1998.
Each member of the Board of Directors for 2015 will receive a reward more than 20 million rubles, follows from the materials for the meeting. The Chairman of the Board of Directors Viktor Zubkov will be paid out of 26.07 million rubles., and Miller (Vice-Chairman) — 25,2 mln.
At the entrance to the meeting was a huge queue of shareholders, mostly retirees. Because of delays with the organization and verification of documents not everyone managed to get to the Central hall. On the questions of minorities has allocated a total of 10 minutes, then was adjourned. Answering a question from one of its shareholders, the member of the Board “Gazprom” Andrey Kruglov has promised that dividends will continue to grow. “We have committed to pay dividend no less than previous years. You know that last year was the most difficult from a financial point of view, and the level of dividends was retained. This year we are the size of the dividend increase”, — he said.