Gazprom shares fell on the Moscow Stock Exchange on Monday evening after it became known that the company will not pay dividends based on the results of work in 2023.
Shares of Russia's Gazprom collapsed after refusing to pay dividends
On the evening of May 20, shares of Russian Gazprom plunged on the Moscow Stock Exchange after it became known that the company would not pay dividends based on the results of its work in 2023.
It is noted that Gazprom's quotations fell by almost 6% to 145.03 rubles, the lowest since October 2023. Amid the Russian government's decision to prepare a directive on the refusal of payments, Gazprom's capitalisation decreased by almost $1.6 billion in an hour.
It is noted that paying dividends to Gazprom is simply nothing. For the first time in 25 years, the company ended last year with a net loss, which became a record in its three-decade history. After the loss of the European market, Gazprom's exports fell back to the level of 1985 (69 billion cubic meters). Not being able to sell gas, Gazprom was forced to freeze wells and, in two years, lost a quarter of production, the volume of which last year became the lowest in the company's history.
Having lost the gas war with Europe, Russian President Vladimir Putin counted on China's support, offering to build a second one, "Power of Siberia-2" with a capacity of 50 billion cubic meters, in addition to the "Power of Siberia" pipeline.
However, Putin did not get approval from Beijing despite assurances of a "strategic" partnership "without borders. In particular, the Russian president's state visit to China last week proved powerless to influence the situation. Putin did not receive a new contract, and Xi Jinping never mentioned Russian gas in official comments.
Gazprom revenues have decreased significantly
The revenues of the Russian energy company Gazprom, reduced considerably by the loss of the European market, will continue to fall until at least 2030.
In 2023, the Russian company pumped about 69 billion cubic meters to customers — the minimum volume since 1985. Compared to 2022 (100.9 billion cubic meters), which has already become the worst for the Russian company in its entire history, the volume of gas pumping has decreased by a third.
