Gazprom OAO (ADR) (OTCMKTS:OGZPY): 1Q13 Results ‘Better Than Expected’


Dallas, Texas 09/23/2013 (Financialstrend) – Russia based, Gazprom OAO (ADR) (OTCMKTS:OGZPY) provides gas pipeline systems and gas supply to European countries. The company also operates in energy generation as well as in the oil production and refining activities. The company’s operational pipeline includes exploration, production, processing, storage, transportation and sale of gas, crude oil and refined products alongside operations related to electric and heat energy generation.

Earlier this month, the company reported its 1Q13 results suggesting 19% growth in total net sales during the quarter compared to 1Q12 and 9% decrease in the net debt compared to 4Q12. The company reported whopping 60% increase in the adjusted EBITDA compared to the quarter a year ago.

Equities Research Analysts believes these results to be better than expected. Pavel Sorokin, research analyst at Morgan Stanley, commented that prices, sales volume and free cash flow have significantly improved and could influence the stock value in a positive way. Another analyst with UFS IC, Ilya Balakirev regarded the 1Q13 results as moderately positive.  He added that the gas sales in Europe and higher EBITDA have surpassed their expectations. Ivan Khromushin, lead analyst at Gazprombank, also mentioned that the EBITDA outperformed the consensus estimate by 10%.

Gazprom OAO (ADR) (OTCMKTS:OGZPY) has market capitalization of $109.02 billion. The stock of the company has traded along the 52 week range of $6.44 and $10.57. As the stock is up trending towards its 52 week high, the year to date performance is almost flat suggesting a slight decline of 2.75%. However the stock has delivered more than 35% and 17% return during the trade in past three months and past one month respectively.

On Friday, September 20, 2013 the stock traded in the range of $9.19 and $9.31 before closing at $9.21, around 0.75% below its previous close. The stock traded with volume of 436,344 shares, almost half of its average trading volume of 893,496 shares.