Gazprom to spend RUB 105.793 billion on non-current assets

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AK&M 14 September 2020 23:41

The Management Committee of PJSC Gazprom has endorsed the revised drafts of the investment program and budget (financial plan) for 2020. As per the revised investment program for 2020, the overall amount of investments will stand at RUB 922.49 billion, which is RUB 182.2 billion less than was envisaged in the investment program approved in December 2019, the company informed.

In particular, RUB 720.67 billion will be spent on capital construction projects (down by RUB 212.73 billion), RUB 105.79 billion on non-current assets (up RUB 15.82 billion), RUB 96.022 billion on long-term financial investments (up RUB 14.67 billion).

The adjustments to the investment program for 2020 are related to changes in the external market conditions, including those caused by the pandemic of the new coronavirus infection.

Pursuant to the revised draft budget of Gazprom for 2020, the financial borrowings (without intra-Group borrowings) will total RUB 501.287 billion (a decrease of RUB 56.482 billion). In addition, as a result of cost optimization measures, the operating costs will be reduced by RUB 297.1 billion. This financial plan will provide for a full coverage of the Company's liabilities without a deficit.

The revised draft investment program and budget (financial plan) of Gazprom for 2020 will be submitted for consideration by the Gazprom Board of Directors.

PJSC Gazprom (tax number: 7736050003) is the world's biggest gas company. Its authorized capital is RUB 118.367 billion and consists of 23,673,512,900 common shares with a face value of 5 rubles. The company has several hundred thousand shareholders in Russia and abroad. The Russian Federation owns more than 50% of Gazprom's shares. The Bank of New York Mellon is the depositary of Gazprom's ADR program.

IFRS profit of PJSC Gazprom for the first half of 2020 dropped by almost 95% to RUB 45.46 billion from RUB 878.644 billion a year earlier. Revenue from sales decreased by almost 29% to RUB 2.903 trillion from RUB 4.077 trillion, profit from sales by 75% to RUB 189.985 billion from RUB 780.878 billion. Loss before tax was RUB 16.806 billion against a profit of RUB 1.125 trillion.