Gazprom 4Q 19 Earnings Preview - FCF likely negative due to low gas prices and higher capex
Top line and EBITDA: Expected to be released on April 29, 2020, 4Q 2019e financial results are forecasted to come in weaker yoy on both revenue and EBITDA due to lower yoy gas sales volumes as well as lower yoy export gas prices. In particular, Gazproms total gas sales declined in 4Q 19e by 4.6% yoy to 143 bcm mainly driven by lower domestic sales (-5.7% yoy to 82 bcm) and lower sales to Europe (-5.2% yoy to 50 bcm). Besides, Gazproms 4Q 19e export gas prices dropped by over 27% yoy to USD 196/kcm on the back of the fall in natural gas prices in Europe (TTF decreased by 41% yoy to USD 4.9/mbtu). Moreover, we also estimate a negative effect from retroactive gas price adjustments as a result of Stockholm Arbitration courts decision on Gazproms litigation with PGNiG of about USD 1.5 bn in 4Q 19e.PJSC Gazprom is a gas company based in Russia. Co.'s principal activity is the sale of gas. Co. is also involved in other types of activities which include leasing of assets, gas transportation and storage services, sale of gas condensate and refined products. Co. and its subsidiaries and associates operates gas pipelines systems in Russia. Co. is responsible for substantially all gas production and high pressure gas transportation in the Russian Federation. Co. is also a major exporter of gas to European countries. Co. is directly involved in exploration and drilling for hydrocarbons, production of gas and other hydrocarbons and domestic and export sale of gas and other hydrocarbons.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.