Russia - 03

Russia: Gazprom’s 2017 Outlook: Financial Poverty, Political Strength

Gazprom is finishing 2016 with one of the weakest financial results in recent years. The company’s CFO, Andrei Kruglov, recently suggested that the monopoly’s EBITDA may drop over 30% in dollar terms. We expect Gazprom’s EBITDA to reach about $19bn this year, compared to about $30bn in 2015 and $51bn in 2013. Kruglov has also hinted that Gazprom’s investments may exceed its operating cash flow; as a result, its free cash flow may be zero or negative for the year. Gazprom’s production this year will reach a new post-Soviet low: its latest adjusted forecast is 408.9 bcm, almost 10% below the original plan for 2016.


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