Company report
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24 Pages

Gazprom corporate report

Gazprom corporate report

Report summary

Weak fundamentals, falling oil prices and international sanctions hit hard Gazprom's share price at end 2014. The company now trades at a 76% discount to our base-case valuation. Unwinding this discount will not be easy. Gazprom faces challenges on numerous fronts, and geopolitical risk will continue to weigh heavily on market perception. Pressures in its key European export market such as flatlining demand, increasing supply competition and EU regulations are compounded by an underlying political tension between Russia and the West. At home, Gazprom faces intensifying supply competition, as Rosneft and NOVATEK further erode its share of the domestic market and continue to challenge its export monopoly status.

What's included?

This report includes 2 file(s)

  • Gazprom corporate report PDF - 514.80 KB 24 Pages, 6 Tables, 25 Figures
  • Gazprom Corporate Report.xls XLS - 3.75 MB


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Company report offers thought-provoking insight into corporate financial health, investment strategy and operational outlook supported by our proprietary asset data and energy research experts.

Widely used by both the energy and financial sectors, our report gives you a unique perspective on key strategic and financial challenges, as well as opportunities facing this oil and gas company.

Wood Mackenzie provides an independent evaluation and expert opinion on the operational performance, strategy and future of the world's top oil and gas companies. Our unique, objective analysis helps you understand, validate, compare and challenge market and corporate views so you can assess strategic opportunities.

  • Executive summary
  • Strategy
    • Overview
    • Europe: supply/demand fundamentals and geopolitics will limit Gazprom's growth
      • Gazprom's strategic response – accepting the new reality; strengthening competitive advantage
    • China: diversification is a strategic priority
      • The China gas export deal marks Gazprom's first step in its shift towards Asia
      • New gas ventures with China: supply from West Siberia via Altai and the Far East of Russia
  • Financial health
    • Financial health overview
    • Cash flow breakeven outlook
    • Net debt and gearing outlook
  • Investment
  • Resources, reserves and production
    • Resources and reserves overview
    • Production overview
  • Key success factors
  • Economic assumptions
    • Wood Mackenzie Corporate Service: our response to low oil prices
    • Economic assumptions

In this report there are 31 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Strategy
    • Relative share price performance
    • Market premium to WM valuation
    • Europe gas supply mix
    • Gazprom delivered cost curve into Europe - 2025
    • Effect of RR depreciation on Gazprom's East Siberian portfolio (NPV10, IRR)
    • China gas supply and demand balance
    • Strategy: Image 7
    • Gazprom's portfolio sensitivity domestic prices
    • Gazprom's portfolio value by resource theme
    • GAZP LNG supply: well below its 15% target in 2030
  • Financial health
    • Gazprom's cash flow breakevens
    • Benchmarking: upstream cash flow breakevens (2015 to 2017)
    • Net debt outlook
    • Benchmarking: upstream base case cash flow outlook
  • Investment
    • Gazprom: upstream and midstream* investment (2015 to 2020)
    • Top ten projects by projected capex to 2020
  • Resources, reserves and production
    • Gazprom 2p liquid reserves by region
    • Gazprom 2p gas reserves by region
    • Benchmarking: reserves and resources detail
    • Gazprom reserves and resources life
    • Reported historic and Wood Mackenzie forecast total production
    • Gazprom's production by field
    • Benchmarking: production growth
  • Key success factors
  • Economic assumptions
    • Base price assumptions (nominal terms)
    • Base price assumptions (nominal terms)
    • Base, high and low Brent (nominal terms)
    • High price assumptions
    • Low price assumptions
    • Valuation assumptions
    • Foreign exchange rate assumptions
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