Gazprom has significantly reduced the profit under IFRS for the year 2019 by 17%, to 1.2 trillion rubles. the company’s EBITDA fell by 28.5% to 1.86 trillion and free cash flow for the year went into negative territory because of payments of “Naftogaz of Ukraine” by the decision of the Stockholm arbitration. Gazprom also revealed that the investment program in 2020 could be reduced by 30% to 1.6 trillion rubles. the Net profit of “Gazprom” for 2019, according to IFRS amounted to 1,203 trillion rubles, which is 17% lower than in 2018 (1,456 trillion). Revenue from sales decreased 7% to 7.66 trillion rubles, follows from materials of the company.Free cash flow (FCF; adjusted for the change in short-term deposits) at the end of 2019 was negative — minus 189,534 billion rubles Main reason for the discrepancy of the forecast of company reporting is likely to become the payment of the debt “Naftogaz of Ukraine” by the decision of the Stockholm arbitration. Ukrainian company in 2019 increased its net profit 5.5 times, up to approximately $2.34 billion due to the payment of “Gazprom” of $2.9 billion in the arbitration decision.EBITDA “Gazprom” for the year fell by 28.5%, to 1,859 trillion a significant contribution to the decline made the fourth quarter of 2019 c drop in EBITDA to 337,411 bn, which is 6.7% below the consensus forecast of analysts. The company’s net debt in 2019 increased by 5.1% and as at 31 December amounted to 3,168 trillion Revenue from gas sales decreased by 12%, to 4.53 trillion rubles, including revenues from sales of gas in far abroad countries fell by 16% to 3.16 trillion rubles This is due to the decrease in demand for gas in Europe — the main market for “Gazprom” — in 2019. Revenues for the sale of gas to the countries of the former USSR (mainly in Belarus) increased slightly by 2%, to 393 billion rubles are Also in 2019, about a quarter has decreased the amount of remuneration to top managers — to 3.18 billion rubles. Gazprom also revealed in the report that it plans a significant reduction of the investment in 2020 in the whole group — up to 1.6 trillion rubles. against 2,125 trillion a year earlier.Tatiana Woodpecker
