GAZPROM'S ANNUAL INVESTMENT: $17.5 BLN
REUTERS - Russian gas giant Gazprom said on Tuesday it expected debt repayments to peak in 2018 and investments to peak between 2018 and 2020 as it boosted spending on major pipeline projects.
Gazprom, which is involved in building three major gas pipeline projects to Europe, China and Turkey, frequently draws criticism from analysts who say it should rein in spending.
Gazprom expects its average annual investment until 2035 to be capped at 1 trillion rubles ($17.5 billion).
Gazprom Group, which combines the gas business with the Russian firm's oil and power generation units, expects to spend 1.28 trillion rubles on investment this year.
Gazprom Chief Financial Officer Andrey Kruglov told investors in New York that the company would continue to be a big spender in the coming years, adding that its debt repayments would reach a high of more than $13 billion in 2018.
A negative net cash flow was fairly likely both this year and next, he added.
The state-controlled Russian company is facing political resistance in Europe, particularly over Moscow's role in the Ukrainian crisis, but it still plans to boost its share of the European gas market.
Gazprom, whose gas business relies on pipelines, is also facing steeper competition from producers of liquefied natural gas (LNG), which can be shipped from sources around the world.
"It is not only Gazprom, but foreign analysts as well recognize Russian pipeline gas' competitiveness in comparison to LNG," Kirill Polous, a Gazprom senior manager, told investors in New York.
Gazprom's three major pipeline projects are the Power of Siberia pipeline to China, Nord Stream-2 to Germany and TurkStream to Turkey and Southern Europe.
Gazprom aims to boost gas production and exports.
By 2020, the company said it would produce 15 percent more gas than in 2016. In 2018, it would produce 476 billion cubic meters (bcm) of gas, compared to 471 in 2017, Gazprom said.
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U.S. FRB - Industrial production edged up 0.1 percent in July after rising at an average pace of 0.5 percent over the previous five months. Manufacturing production increased 0.3 percent, the output of utilities moved down 0.5 percent, and, after posting five consecutive months of growth, the index for mining declined 0.3 percent. At 108.0 percent of its 2012 average, total industrial production was 4.2 percent higher in July than it was a year earlier. Capacity utilization for the industrial sector was unchanged in July at 78.1 percent, a rate that is 1.7 percentage points below its long-run (1972–2017) average.
NPD - Preliminary production figures for July 2018 show an average daily production of 1 911 000 barrels of oil, NGL and condensate, which is an increase of 64 000 barrels per day compared to June.
GAZPROM NEFT - For the first six months of 2018 Gazprom Neft achieved revenue** growth of 24.4% year-on-year, at one trillion, 137.7 billion rubles (RUB1,137,700,000,000). The Company achieved a 49.8% year-on-year increase in adjusted EBITDA, to RUB368.2 billion. This performance reflected positive market conditions for oil and oil products, production growth at the Company’s new projects, and effective management initiatives. Net profit attributable to Gazprom Neft PJSC shareholders grew 49.6% year on year, to RUB166.4 billion. Growth in the Company’s operating cash flow, as well as the completion of key infrastructure investments at new upstream projects, delivered positive free cash flow of RUB47.5 billion for 1H 2018.
REUTERS - Front-month Brent crude oil futures LCOc1 were at $72.34 per barrel at 0648 GMT, down by 12 cents, or 0.2 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 23 cents, or 0.3 percent, at $66.81 per barrel.