GAZPROM'S FINANCIAL GROWTH
GAZPROM - September 27, 2022 - Famil Sadygov: key financial indicators for first six months of 2022 showing confident growth
“As usual, September is the time we take stock of the Gazprom Group's IFRS results for the first half of the year. The key financial indicators are showing confident growth over the first six months of the year.
In the first half of 2022, we worked against the backdrop of high prices in Europe's gas market. The average price of Gazprom's gas exports beyond the FSU in the first six months of 2022 was over 3.5 times higher than the price recorded in the same period of 2021. This laid the foundation for record-high financial results.
The Gazprom Group's EBITDA for the first six months of 2022 totaled RUB 3.052 trillion, a new all-time record that more than doubles the amount recorded in the first half of 2021. This result was achieved thanks not only to high prices but also a strict approach to controllable operating costs.
The net profit amounted to RUB 2.514 trillion, which not only marks a 2.6-fold increase against the amount recorded in the first half of 2021 but also exceeds the total profit of the Gazprom Group for the two previous calendar years!
This excellent financial result has allowed us to, for the first time ever, consider the option of paying out interim dividends to our shareholders. The dividend base for the first six months of 2022 following adjustments for non-monetary items under the Dividend Policy totaled RUB 2.416 trillion, which translates into RUB 51.03 per share*.
We did not undertake borrowings for the Group's parent company in the first half of 2022. Total debt went down by nearly RUB 1.4 trillion to RUB 3.467 trillion. This indicator was positively affected by the appreciation of the ruble by 31 per cent against the US dollar and by 36 per cent against the euro in the reporting period. The Group's debt portfolio is dominated by long-term borrowings. The net debt adjusted for deposits totaled RUB 1.250 trillion, falling by over half in the six months of 2022 to its lowest in the last seven years. Cash and cash equivalents, as well as bank deposits on the Group's balance sheet (liquidity cushion), added up to RUB 2.218 trillion.
The debt burden with regard to the net debt/EBITDA ratio** for the first six months of 2022 dropped to a very low 0.23, thereby perfectly demonstrating the robust financial position of the Gazprom Group.”
*The Board of Directors approved the agenda of the extraordinary General Shareholders Meeting to be held on September 30, 2022, which will consider the amount of interim dividends on the shares of Gazprom, as well as the timing and form of their payment based on the Company's performance in the first half of 2022.
**Net debt (adjusted by deposits)/EBITDA for the past 12 months.