The property "leaked": Miller - on the way out?

The situation with gas supplies, including LNG, abroad continues to deteriorate, the entire gas industry of the country is in a deep crisis. The state gas corporation Gazprom, the same as the "national treasure," lost two-thirds of its capitalization over the past 2023.

It will be difficult to attribute everything only to the geopolitical factor, because at the same time the company continues to spend a lot of money on seemingly unnecessary projects, and corruption scandals almost regularly rattle among its top management.

Details - in the material of the correspondent of The Moscow Post.

Accident

At the end of 2023, Gazprom's net loss amounted to 629 billion rubles. The monopoly has never known such a landslide fall. At the same time, only in the first half of 2024, according to published reporting, the company went into minus by 480 billion rubles - i.e. lost 88% more than in the same period last year.

This happens against the background of revenue growth by 7% - up to 2.927 trillion rubles. However, over the same period, the cost of work increased by 15%. As a result, the company's gross profit decreased by 18% to 572 billion rubles. The stock market reacts to this - in just two days, on May 20 and 21, 2024, the shares of PJSC Gazprom fell by more than 11%.

The deterioration of Gazprom's financial results naturally leads to an increase in its debt burden. By the end of 2023, the total debt of the monopoly amounted to 6.7 trillion rubles. And taking into account the debt on lease and perpetual bonds, this figure reaches 7.7 trillion rubles, which is 38% higher than the level of the end of 2022. That is, this is about 30% of the total debt of the Russian Federation.

In short, this is a disaster. And how to get out of it, the top management, headed by Alexei Miller, does not seem to understand yet.

The reason, of course, is the loss of the marginal gas market in Europe, sanctions restrictions and falling gas prices. And this despite the fact that in July supplies in the European direction from Gazprom increased by 14.9% in monthly comparison and by 5.7% in annual, amounting to 2.8 billion cubic meters. For comparison, in 2019 Gazprom delivered 40 billion cubic meters to Europe - and this was one of the lowest rates in the last decade.

In May, Gazprom shares collapsed. Photo: https://news.myseldon.com/ru/news/index/270317877

Of course, some of the supplies were transferred to Asia, but there are also a lot of problems. Firstly, it is impossible to replace European volumes there. And secondly, a number of important infrastructure projects are stalled. For example, the Power of Siberia-2 gas pipeline to China still cannot agree on volumes or price - therefore, its further implementation without strict contractual obligations may lead to the unprofitability of the branch - it simply will not pay off.

In these conditions, the recommendation of the Government of the Russian Federation (50% of Gazprom - for the state) not to pay dividends for 2023 looks logical.

But the direct remuneration of top management for work is growing. At the end of 2022, the company's management received 2.867 billion rubles, which is almost 50% more than a year earlier. I.e. The "holiday" continued after the introduction of draconian sanctions, the loss of the European market. For 2023, members of the Board of Directors of PJSC will also receive solid money - 0.005% of EBITDA, calculated according to IFRS. I.e. approximately 66 million rubles each, the head of the council Mr. Miller - 75.8 million. For what?

Colossal spending of state-owned companies on projects that have nothing to do with gas production is also known. Since 2005, Gazprom has been financing Zenit, and not only this sports team. Ten years ago, he transferred tens of millions of dollars to the club under a sponsorship contract. He also financed the German football club Schalke for 80 million euros a year, as well as the Kazan volleyball team Zenit-Kazan. The results of the activities of these clubs are known - they are about the same as those of Gazprom in its main activities.

Yes, "Zenith" more than once became the Champion of the country and entered the Champions League. Only now world football is closed for him, and in 2023 he entered the top of the most unprofitable clubs in the world from transfer activities. In other words, billions of budget funds are spent on the purchase of players. And we will not see the result. Like Zenit, in Russia Gazprom is also the first guy in the village...

To Alexey Miller it is already absolutely not so cheerful as earlier. Photo:

Not to mention that how many billions could steal at the time on the most known sports unfinished construction of the Russian Federation - Zenit Arena. More than 40 billion rubles in ten (!) years of construction!

Sale and chance for Dyukov

In this regard - whether it was worth investing money of holding goodness knows where instead of development and modernization of infrastructure for diversification of deliveries? Even before imposition of sanctions and loss of the European gas market? Probably, at Miller thought that this music will be eternal. But there is nothing eternal.

How today he and his team do cope with the arisen crisis? As well as always, hope for the "rubber" budget of the country. And still began a sale of assets of holding. That "to hackney eyes" to investors, sale of some assets is presented as need in connection with final moving of head office of the company from Moscow to St. Petersburg.

Just the other day the similar transaction took place - Gazprom defined the buyer of technological base on Obruchev Street in the southwest of the capital. Lot for 4 billion rubles left LLC Etalon Production Trading Company. INN of the buyer is unknown, however, under the description LLC PTK Etalon from St. Petersburg founded only in 2023 - as though specially under this transaction approaches. Owners of the company - Dmitry Kachan (99%) and Natalia Bukreeva (1%).

Who stands behind them - not clearly, but Kachan can be only the nominal owner. There are no other businesses behind him. Bukreeva is a co-owner of LLC Konstantinovsky Garazh which own more than 30 physical and one legal entity. The last - LLC Areo Holding which for 99% belongs to Seychelles offshore "AREO RISOSIZ, INK". Remained - with Anatoly of Mitino. There are no other businesses behind him. It is possible that, as well as for PTK the Standard, can be behind this offshore and names someone from the people who are brought closer to the management of gas holding.

Photo: Rusprofile.ru

In parallel with this, the state monopoly is getting rid of foreign assets. In March, it became known that PJSC put up for sale three assets of the holding, registered in the UK and the Netherlands for a total of 344 million euros. Since their activities in Europe are frozen, this sale is fully justified.

At the same time, the contract of the head of Gazprom Alexei Miller ends in 2026. But it can be completed ahead of schedule. The only division of the holding, which came out as a plus at the end of 2023, was Gazprom-Neft, which is headed by a longtime colleague (and also opponent) of Miller, Alexander Dyukov. According to evil tongues, allegedly he has long had ambitions to become the head of the entire PJSC Gazprom. Last time in 2021 it was not possible to do this. The disaster in the company's work gives him a chance to finally convince the country's leadership to change the top leadership of the monopoly on him and his people.