GAZPROM

Analysis of Gazprom share price

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Before trading on the GazProm group's share price, you must have all the knowledge essential to carrying out your analyses of this stock. Through this article, we will help you in this regard by revealing the details of the activities and revenues of the company, its main competitors on the market as well as some examples of recent partnerships and the elements to monitor as part of your fundamental analysis of this stock because of their likely influence.

Elements that can influence the price of this asset:

Analysis N°1

First of all, closely monitor the various agreements that the Gazprom group is likely to sign with certain companies relating to the scientific and technological aspects of its activity. These agreements can help Gazprom to develop new technologies in order to reduce its operating costs and increase its efficiency.

Analysis N°2

Likewise, Gazprom regularly puts in place strategic memorandums with major oil and gas groups and even with railway companies, which allow it to accelerate its presence and increase its sources of income.

Analysis N°3

Gazprom's gas investment program and all of its production projects should also be closely monitored, which will also help it increase its sources of profit and become more competitive.

Analysis N°4

Of course, government regulations must also be taken into account here, which often leads to unfavourable pricing policies and can lead to losses for the group or thwart its strategic growth plans.

Analysis N°5

The weather conditions in the Siberian region in which the group carries out a large part of its activities should also be monitored due to the possibility of causing production or transport problems and therefore increasing operational costs.

Analysis N°6

Finally, you will also have to follow the oil and natural gas market with interest and the fluctuations in the prices of these two raw materials which may favour or disadvantage the activities of Gazprom.

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General presentation of Gazprom

To go further in your knowledge of Gazprom, check out the company and the details of its activities as well as its main sources of income.

The Gazprom Group is a Russian company operating in the oil and natural gas sector. More specifically, Gazprom is currently positioned as a leader in the exploration, production and sale of natural gas throughout the world.

To better understand the group's activities, they can be divided into several divisions according to the percentage of turnover they generate as so:

  • Gazprom's natural gas distribution activities generate most of the group's income with 49.6% of turnover.
  • Next come the sale of hydrocarbons and refined petroleum products which generate 27.6% of the group's turnover with 70.2 million tonnes sold in 2019.
  • The exploration, production and sale of crude oil and condensed gas activities represent 9.8% of Gazprom's turnover.
  • Then we find the production and sale of electricity and heat with 6.8% of turnover.
  • The storage and transport of natural gas here represents 2.8% of the company's turnover.
  • Finally, the remainder of the group's turnover, i.e. 3.4%, comes from ancillary activities.

Currently, the Gazprom group employs nearly 473,800 people around the world.

Analysis of Gazprom share price
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The major competitors of Gazprom

After discovering the activities of the Gazprom group, learn more about its sector of activity with a presentation of its main competitors on the market:

Rosneft

This Company is a Russian state-owned company that specializes in the extraction, processing and distribution of petroleum. It is the second largest oil producer in Russia and its headquarters are based in Moscow. This company is of course also listed on the Russian market and its market capitalization is several tens of billions of dollars.

Tatneft

This other Russian company is currently one of the country's most important oil explorers and extractors. It is a vertically integrated oil company, which means that it carries out the activities of production, refining, petrochemicals and distribution of fuels.

Surgutneftgas

Finally, the third major Russian player to watch as part of your analysis of Gazprom's competition is Surgutneftgas, which specializes in the production of oil and natural gas. This company has been in existence since 1993 following the takeover by several entrepreneurs of several gas and oil companies which belonged to the State and responsible for the exploitation of raw materials in Western Siberia.


The major partners of Gazprom

After having toured Gazprom's main competitors, check out some of its allies with two tangible examples of strategic partnerships that this group has set up in the past.

OMV

In 2017, Gazprom established a strategic partnership with the Austrian oil company OMV. The two groups signed, during the International Economic Forum in Saint Petersburg, a memorandum of understanding aimed at coordinating the gas transport operations necessary to supply Central and Southern Europe. Keep to mind that OMV is Gazprom's main partner in Austria. In addition, the two groups have also signed an agreement in the liquefied natural gas or LNG sector which has enabled them to carry out joint projects for a production terminal on the Black Sea coast.

Total 

Another interesting strategic partnership was signed in 2010 between Gazprom and Total. It was then an agreement to sell a 20% stake in the Ipati and Aquio licenses in Bolivia. Total then acquired 60% of this stake, Gazprom 20% and Tecpetrol 20% as well. In fact, Total discovered in 2004 a gas field in Incahuasi on the Ipati permit. The drilling of well X-1001 on the permit made this discovery exploitable. The permits are located 200 km from the city of Santa Cruz, in the piedmont area of the Andes Cordillera. It's also important to mention that, in 2008, the two companies had signed a cooperation agreement with Yacimentos Petroliferos Fiscales Bolivianos in order to negotiate the exploration conditions of the Azero permit.

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Frequently Asked Questions

When and how was Gazprom created?

It was in 1965 that the Ministry of Gas Industry in Russia was founded, with the aim of taking over the exploration, extraction, transport and distribution of natural gas. In 1989 with the structural economic reforms of the country, the ministry was transformed into a state group called Gazprom which then became a state-owned company in 1993. It was Viktor Tchernomyrdin, the future head of the Russian government, who headed the group until 1992.

Who are the different subsidiaries owned and operated by Gazprom?

To carry out its various activities around the world, the Gazprom group can count on its various subsidiaries, including the companies Gazprom Neft, Gazprombank, Gazprom-Media, Gazprom Export, Mosenergo as well as a hundred other subsidiaries held all over the world.

How can I study Gazprom share charts?

The first thing to do to properly study Gazprom share charts is to choose real-time charts that can be personalized and on which you can display different technical indicators simultaneously. It is also always important to compare the technical signals obtained with the signals of the fundamental analysis.

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