Gazprom generates positive free cash flow for eleventh consecutive year

The Gazprom's Financial and Economic Policy Press Conference was held at the Company’s office in Moscow today in the lead-up to the annual General Shareholders Meeting. The Press Conference featured Andrey Kruglov, Deputy Chairman of the Management Committee, Elena Vasilieva, Deputy Chairwoman of the Management Committee and Chief Accountant, Alexander IvannikovKaren Oganyan, and Vitaly Khatkov, Heads of Departments, and Mikhail Rosseev, Deputy Chief Accountant.

The Gazprom's Financial and Economic Policy Press Conference was held at the Company’s office in Moscow in the lead-up to the annual General Shareholders Meeting

The Gazprom's Financial and Economic Policy Press Conference was held at the Company’s office in Moscow in the lead-up to the annual General Shareholders Meeting

It was noted at the Press Conference that in 2016 Gazprom had delivered solid financial results despite a number of unfavorable macroeconomic factors. For the eleventh consecutive year the Company generated a positive free cash flow, which amounted to RUB 202 billion in 2016. Gazprom’s net profit rose to RUB 952 billion, adding 21 per cent compared to 2015.

Gazprom's Financial and Economic Policy Press Conference held in Moscow in lead-up to annual General Shareholders Meeting

Andrey Kruglov

These gains can be largely attributed to Gazprom’s conservative financial strategy, which envisages, in the first place, stringent limits for operating expenses, strict ranking of investment projects during budgeting, thorough control and optimization of costs, and efficient debt management and currency risk mitigation.

This approach allows the Company to maintain the balance between funding investment projects largely from the operating cash flow, keeping the debt load and liquidity cushion at a comfortable level, and ensuring that the Company’s shareholders receive dividends equal to or higher than the previous year’s amount.

The Gazprom's Financial and Economic Policy Press Conference was held at the Company’s office in Moscow in the lead-up to the annual General Shareholders Meeting

The Gazprom's Financial and Economic Policy Press Conference was held at the Company’s office in Moscow in the lead-up to the annual General Shareholders Meeting

It was stressed at the Press Conference that the Company needs a stable tax regime to plan its business activities. However, in recent years taxation parameters for the oil and gas industry have changed every year, with a persistent upward trend for the severance tax on gas produced by the Gazprom Group.

An emphasis was placed at the Press Conference on the Company’s efforts in improving its corporate governance taking into account global best practices. One of the important outcomes of 2016 was that the Moscow Exchange confirmed that Gazprom had fulfilled all quality requirements for corporate governance to retain its position on the top-tier quotation list. In 2017, the Company will continue its efforts aimed at increasing its performance transparency.

The Press Conference also touched upon other issues related to Gazprom's current and future financial and economic performance.

Gazprom website Editorial Board

 

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Press release: Environment Secretary explores the future of farming at the Royal Norfolk Show

Farmers across East Anglia could produce, sell and export more than ever before following the UK’s exit from the EU with the help of cutting edge technology and innovation, the Environment Secretary said today.

On a visit to the Royal Norfolk Show on 28 June 2017, Environment Secretary Michael Gove met with researchers and businesses at the ‘Innovation Hub’ to find out more about the latest research and emerging agricultural technologies.

From a ‘FitBit for cows’ that provides real time information on the health of a herd, to a demonstration of how ‘agrimetrics’ data can support farmers and boost food production, pioneering agricultural technology (agri-tech) on display at the show could provide new opportunities for East Anglia’s farmers.

Speaking at the show, Environment Secretary Michael Gove said:

Emerging technologies will play a vital role in boosting productivity and growth, unlocking the full potential of our farming industry as we adapt to a rapidly changing world and maintain our leading role on the global stage outside the European Union.

The East of England is a real hotbed of agricultural innovation and the enthusiasm and passion of the region’s farmers, who exported a record £1.6bn of food and drink last year, is truly inspirational.

Agri-tech contributes £14.4bn to the UK economy every year, underpinning the UK’s food and drink industry, our largest manufacturing sector. The government has already invested £160 million through the Agri-Tech Strategy to help develop innovative solutions from the laboratory through to the farm.

Dr Belinda Clarke, Director of Agri-Tech East, an independent membership organisation supporting the development of the agri-tech cluster, said:

Innovation is most effective when it is focussed on solving clearly defined problems. By bringing progressive farmers, who are willing to pilot new approaches, together with those who have potential solutions, Agri-Tech East is facilitating a step-change in agri-food production that is productive, profitable and sustainable.

The Innovation Hub is a good showcase for the agri-tech cluster, showing how collaboration can accelerate innovation based on sound science.

The Environment Secretary also visited the show’s food hall, meeting with food producers from across the east of England, and visited the ‘Broads Village’ which showcases the importance of the National Park to industry, culture and landscapes.

News story: Introduction of Space Industry Bill shows UK’s commitment to commercial spaceflight

The Bill, which was outlined in the Queen’s Speech, is a clear signal of the UK’s commitment to enabling commercial spaceflight from UK spaceports, and a key part of the Government’s Industrial Strategy to ensure the UK businesses capture a share of this emerging global market.

Lord Callanan, Parliamentary under Secretary of State for Transport introduced the Space Industry Bill, which is a joint initiative by the Department for Transport, UK Space Agency and Civil Aviation Authority supported by the Health and Safety Executive.

Universities and Science Minister Jo Johnson said:

The Space Industry Bill will ensure the UK remains a leading player in the commercial space age by enabling small satellite launch from UK spaceports. The measures in the Bill will help make the UK the most attractive place in Europe for commercial launch and enable UK businesses to capture a growing share of this emerging global market.

The emerging markets for small satellite launch and sub-orbital flight are forecast to be worth over £25 billion globally over the next 20 years. They offer exciting opportunities to grow the UK space sector, create local jobs and inspire the next generation of British scientists and engineers.

The main elements of the Bill are:

  • new powers to license a wide range of spaceflight activities, including vertically-launched rockets, spaceplanes, satellite operation, spaceports and other technologies
  • a comprehensive and proportionate regulatory framework to manage risk, ensuring that commercial spaceflight in the UK remains safe
  • measures to regulate unauthorised access and interference with spacecraft, spaceports and associated infrastructure, drawing on the UK’s extensive expertise – particularly in aviation security
  • measures to promote public safety by providing a regulatory framework to cover operational insurance, indemnity and liability

This legislation will ensure the UK can take advantage of new markets, overcome dependence on foreign launch services and benefit from the development of new spaceports and supply chains.

Job Posting: Outbound Telesales Adviser

hiring.pngEnergylinx is seeking an outbound telesales adviser to join their friendly, Alloa-based Call Centre.

Job Type: Permanent

The Role: We are looking for enthusiastic, friendly and self-motivated individuals, with drive and determination to join our growing business. You will be required to make a high volume of calls to both business and domestic customers, helping them to renew or switch their energy supplier. Your hours of work will be 20 - 30 hours between 1pm and 8pm Monday - Friday, with the possibility of additional weekend cover.

Key skills: We are looking for people that are comfortable on the phone, with a helpful and professional telephone manner. You will have a proven track record in delivering excellent customer service, as well as consistently hitting your sales targets. You will have a positive attitude as well as the ability to resolve any problems in a calm and reassuring manner.

The Benefits: A basic salary £7.80, followed up by uncapped individual commission. You'll be entitled to 28 days holiday and have access to an employee benefits scheme run by Perkbox.

As part of the application, you will need to complete a Disclosure Scotland check.

For a chance to join our team email or write to us at the address shown below, include a current CV and a cover letter telling us what makes you the ideal candidate.

Applications by email to diane.smith@energylinx.com with the subject line: Outbound Energy Advisor

Or you can send them by post to:

Energylinx Limited
The E Centre
Cooperage Way
Alloa
FK10 3LP


Closing Date:
Friday 7th July 2017

Gazprom and Serbian Ministry of Mining and Energy sign roadmap to develop Serbia’s gas transmission capacities

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Aleksandar Vucic, President of the Republic of Serbia, took place in Belgrade today.

The parties expressed deep appreciation for their bilateral relations, noting the continuously developing partnership in a number of areas, including gas storage. In early June 2017, a memorandum was signed to expand the Banatski Dvor UGS facility. The facility's capacities will be increased from 450 to 750 million cubic meters.

The meeting also touched upon the persistently growing demand for Russian gas in Serbia. According to estimates, Gazprom’s gas exports to the country between January 1 and June 26, 2017, added 47.7 per cent against the same period of 2016.

In light of the increasing gas demand, the parties discussed the development prospects for Serbia’s gas transmission capacities. As part of the meeting, Alexey Miller and Aleksandar Antic, Minister of Mining and Energy of the Republic of Serbia, inked a roadmap in the presence of Serbian President Aleksandar Vucic. The document provides for a number of measures to implement a plan aimed at expanding the Serbian gas transmission system.

Gas transmission in Serbia

Gas transmission in Serbia

Background

Gazprom’s partner in Serbia is Srbijagas, a state-owned company focused on gas transportation, storage and distribution in Serbia.

In 2015, Gazprom and Srbijagas signed the Memorandum of Understanding promoting cooperation in the areas of underground gas storage, use of gas as a vehicle fuel, and small-scale LNG, including as part of scientific & technical cooperation. On June 3, 2017, Gazprom and Srbijagas inked the Memorandum of Understanding to conduct the technical and financial feasibility studies for the expansion of the Banatski Dvor UGS facility.

In 2013, a long-term contract was inked for Russian gas supplies to Serbia for the period of 10 years. In 2016, Gazprom exported to Serbia 1.75 billion cubic meters of gas, a 4.3 per cent increase from 2015.