2021

April 29–30

Investor Day Presentation (PDF, 3.7 MB)

ESG SESSION (PDF, 2.7 MB)

Alexey Miller, Chairman of the Management Committee, Gazprom:

“2020 was a challenging year, primarily due to the coronavirus pandemic. And yet Gazprom managed to overcome all difficulties. The Company ensured the continuity of its production activities, demonstrating the flexibility of its management system and maintaining a steady position in its markets. At the same time, we fulfilled all of our obligations to our consumers both in Russia and abroad.”

“Gazprom’s robust performance in early 2021 and the positive year-end forecast for our budget allowed the Management Committee to make the decision to set the dividend payout ratio at 50 per cent. This decision was made ahead of schedule, as we had originally planned to take this step based on the results of 2021. In view of all this, the Management Committee proposed to the Board of Directors that the dividend payout for 2020 be set in the amount of RUB 297 billion.”

“Environmental performance underpins all of Gazprom’s business processes, and its indicators are integrated into the corporate governance system at all levels. <...> The Company is already devising scenarios for its sustainable development until 2050 amid the trend towards a low-carbon economy.”

Oleg Aksyutin, Deputy Chairman of the Management Committee – Head of Department, Gazprom:

“...While longer-term trends and targets that Gazprom is basing its strategy on have remained mostly unchanged. First and foremost, these include sustainable growth of demand for natural gas in the long term.”

“At first glance, the key growth point for the global energy sector is renewables. Their global share is going to rise by 4 p.p. to 9 per cent by 2040, while the share of gas will only go up by 3 p.p. to 27 per cent. Nonetheless, natural gas is clearly contributing to satisfying the growing energy demand. It is natural gas that will become the fuel of choice in this area. By 2040, natural gas is expected to satisfy about 40 per cent of the new demand for energy as compared to 34 per cent for the renewables.”

“...A broader use of hydrogen could be an additional tool to foster low-carbon development. <...> Later on, we would like to achieve hydrogen production with zero CO₂ emissions. According to independent assessments, natural gas and CO₂ capture technologies are now a much cheaper way of doing that than renewables.”

Vitaly Markelov, Deputy Chairman of the Management Committee, Gazprom:

“...The Company is implementing large-scale projects for the construction of the Amur Gas Processing Plant and a processing complex near the settlement of Ust-Luga in the Leningrad Region. The development of Gazprom’s processing complex will make it possible to process valuable components of “wet” gas into products with high added value, protect the grocery basket from the volatility of commodity markets, diversify gas sales by increasing the production of liquefied natural gases.”

“The Company has adopted a list of most important types of products for import substitution and localization of production. Reducing this list is the key performance indicator towards said goal. From 2015 onwards up until today, the production of 70 per cent of the items on the list has been mastered. The cumulative economic effect of import substitution in 2016–2020 has already exceeded RUB 50 billion, and, moreover, it is growing every year.”

Elena Burmistrova, Deputy Chairman of the Management Committee, Gazprom; Director General, Gazprom Export:

“...Gazprom’s positions as an exporter have remained strong. We are optimistic about the prospects of our gas in the European market. The declining indigenous production in the EU is going to support the growing demand for imported gas. Discontinued coal-fired and nuclear power generation, expanding electrification, and increased capacities of renewables – all these factors will serve to raise the demand for gas as a guarantee of stability for energy systems.

Gas is fully compatible with the most ambitious of climate goals. In a rational and reliable energy system, it will retain its key role as, among other things, the basis for hydrogen production. Gazprom is currently developing solutions in this area.”

“By 2030, we expect China’s gas demand to grow substantially – by more than 50 per cent against the 2020 level.<...> We will increase supplies via the Power of Siberia gas trunkline. This will also stimulate the development of other gas transportation projects in the region.”

Famil Sadygov, Deputy Chairman of the Management Committee, Gazprom:

“...Results for 2020 turned out to be better than the main parameters of the adjusted budget and the expectations of most analysts. Our revenue stood at USD 88 billion and EBITDA at USD 20.4 billion. These results allowed us to finance all of our planned projects.”

“Based on the current market situation, we expect the Gazprom Group’s financials to grow significantly and go back to the pre-crisis levels, namely:

• the growth in EBITDA against 2020 may exceed 50 per cent as compared to the conservative estimate of 9 per cent;
• the growth in net profit will, naturally, cause the dividend base to increase;
• control of the capital investments will ensure that the free cash flow will go back to positive levels. The free cash flow can be expected to cover the dividend payments based on the results of 2020;
• control of the debt burden will bring the net debt/EBITDA ratio back to a comfortable level below 2 points. The long-term baseline for us is the range from 1 to 2 points;
• growing income will allow us to reduce our borrowings by over RUB 100 billion compared to the 2021 budget.”