Capitalization of Gazprom: dynamics by years

The extraction of natural gas in Russia has been for a long time one of the most profitable areas. The entire territory of the country is full of deposits of this resource. The transnational corporation Gazprom is engaged in gas production. There are a few small companies, but they are affiliated with Gazprom and do not conduct a separate activity.

About the Group

"Gazprom" is the largest organization in the world for gas production, its processing and sale in all segments of the population. In addition to activities related to gas production activities, the company is engaged in the following:

• Oil production;
• Realization of fuel among the population;
• Export of resources to other countries.

In addition, Gazprom is the owner of the largest natural gas reserves: 16.9% of the world, and 60% of the Russian Federation.

The main gas pipelines that are conducted on the territory of Russia are also owned by this company. And gas supply to other countries is also made through the distillation of the resource through the pipes of Gazprom.

According to the information published on the organization's website, it can be said that everything the company seeks to do is to provide its consumers with gas in a timely and sufficient manner, and besides, to fulfill intergovernmental agreements and not to allow doubts about its reliability.

But the final goal of Gazprom is to enter the global arena as a global company.

Are the shares of the concern popular?

As you know, the gas giant is very popular among the population. Gazprom's shares are the most attractive option for capital investment. Among the shareholders - and the state, while it ranks first.

State-owned company Rosneftegaz also bought part of the shares of Gazprom. Thanks to this action, the state became the owner of a controlling stake, which is 50.002%.

Judging by the demand for shares, it is no longer surprising that in the ratings of the world's largest corporations, Gazprom takes place in the top ten. On the other hand, according to Bloomberg journalist Anders Asland, "No major company in the world is managed as poorly as Russia's Gazprom."

What forecasts were made before 2015?

Taking into account the development of gas production since the beginning of Gazprom's operation, the shareholders were confident that this company will always be in price. For example, during 2005 the share price grew at a tremendous rate. Capitalization of Gazprom over the years has changed only in a positive way. 2006 was also remarkable, because this year the corporation entered the first ten of the rating of the largest companies in the world.

The market capitalization of Gazprom in 2007 was about $ 300 billion. No one doubted the monumental gas giant. The top manager was going to implement his plans, which included even greater capitalization of the company (Gazprom).

2008 was the most successful for the corporation. Then the maximum capitalization of Gazprom was observed, which amounted to 365.1 billion dollars.

The corporation suffered very badly in 2014. The unrest in Ukraine led to a decrease in the use of Russian gas among Ukrainian citizens. The countries actually broke the agreement on fuel supply.

According to these events, it was possible to judge the beginning of the fall of the gas giant, because Ukraine purchased about 10% of the resource supplied by Russia.

What happened to Gazprom in 2015?

This year was unsuccessful for the corporation. In a few months, capitalization has fallen, Gazprom at a cost was slightly above $ 40 billion. Competitors in terms of value, that is, Sberbank and Rosneft grew in price, and the gas giant slid more and more.

Nevertheless, at the time of 2015, the corporation was the leader of the rating based on information from the Moscow stock exchange.

If we analyze what the capitalization of Gazprom was from 2014 to 2015, the dynamics over the years will show a drop of as much as 20%. Such figures for one year can signal a very unstable position of the company.

Accordingly, gas production itself has decreased. The level of production fell to 414 billion cubic meters. These indicators are the lowest, and the power of the equipment of Gazprom is designed for large scale.

Competition: Gazprom - Rosneft

As you know, competitors even politically try to influence the course of the concern's work. The vice-president of Rosneft called for the abolition of the export monopoly of Gazprom. There were also claims from rivals about the division of the gas giant into small companies.

In addition, judging by the amount of competitive capitalization now, Gazprom can be ousted from the first positions on the world market.

In April 2016, trading on the London Stock Exchange for the first time brought Rosneft to a higher level. Capitalization has also increased, while Gazprom has lagged behind by $ 18 million.

Gazprom shares against Sberbank shares

Not only Rosneft influenced the fall of the corporation. Ordinary shares of Sberbank in late August 2016 suddenly exceeded the capitalization of Gazprom shares.

Two of Russia's largest corporations collided at the Moscow Stock Exchange. The capitalization of Sberbank suddenly exceeded the cost of Gazprom by more than 100 billion rubles. And this is far from the limit, especially if we take into account the current depreciation of Gazprom shares.

What is the difference for the gas company in 2016?

As was mentioned above, competitors in exchange trades began to put a little pressure on the concern that had been shattered by the events of 2014. For seven years (from 2008 to 2015), capitalization almost ten times decreased, Gazprom lost its positions on world stock exchanges.

Ironically, despite a desperate struggle with rivals, the corporation was able to raise its value at auction to almost $ 100 billion. Of course, when comparing the maximum and today's results, this is still not enough.

It can be a long time to ask the negative attitude of potential shareholders to Gazprom. One thing is clear: the forecasts for the development of the corporation for 2017 are quite disappointing.

What threatens the bankruptcy of Gazprom?

For starters, we must not forget that the corporation is currently engaged in the construction of a gas pipe length of two and a half thousand kilometers. The cost of such construction is about thirty billion euros. In addition, the construction of new gas pipelines leads Russia only to huge costs and a decrease in the size of fuel production.

Gazprom also relies on increasing export prices for gas transit. According to experts, this step is unreasonable and may lead to the ruin of the company. The buyer is always looking for cheaper, expensive goods of the same quality do not cause a desire to purchase it.

If the gas giant really goes bankrupt, more than four hundred thousand people risk being left without jobs. Gas prices for the population and business in general will soar to the incredible. Despite the fact that Russia is the most secured gas deposits country, it can still remain without this fuel.

Strange you can count the reaction of President Vladimir Vladimirovich Putin to the remark about the fall of the corporation. He believes that there is absolutely nothing dangerous in this fact, not focusing on the lack of an alternative to natural gas.

The problem also exists in the negative impact of Gazprom's difficulties on the state budget. After all, more than ten percent of the financial condition of the country ensured the income of the corporation. And the entire oil and gas arsenal in general is forty percent. With the possible bankruptcy of Gazprom, there is a huge risk to the stability of the economy of the state as a whole. To prepare for possible problems, it is now necessary to revise the country's economic course.

Even if we take into account what was Gazprom's capitalization by years, and it is sensible to assess the situation based on facts, it is impossible to predict the exact development of the situation.