Shareholder and investor relations

The Company’s mission in its work with the investment community is to facilitate a fair assessment of the company’s value through timely communication and provision of complete and accurate information about its activities.

Gazprom Neft’s activities in this area comply with international best practices and include:

  • holding quarterly conference calls for investors and analysts, at which company management presents Gazprom Neft PJSC’s operating and financial results and conducts a Q&A session;
  • publishing the Management’s Discussion and Analysis of Financial Condition and Results of Operations on a quarterly basis, as an appendix to Gazprom Neft’s financial statements (IFRS).
  • preparing ESG and investor presentations;
  • publishing the Databook and Datafeed statistical reference guides to enable comprehensive analysis of the company’s operations.

The company launched its new IR website for investors and shareholders. The website significantly enhances the disclosure of information on company’s activities, including in the area of sustainable development. The new IR website was highly rated by investors and analysts, and was among the winners of the Corporate & Financial Awards in the Best corporate website: International nomination. The company’s Investor Relations portal is available at ir.gazprom-neft.com.

The company’s IR team and management also meet regularly with investors and shareholders, participate in all major conferences of the investment brokerage community and hold an annual Investor Day, where analysts and investors receive answers to their questions from the company’s top management. The company also holds briefings on issues requiring any further clarification and discussion.

Gazprom Neft organises visits to its upstream sites and downstream facilities to keep investors and analysts informed about the company’s production assets. In-person meetings and roadshows were, however, limited in 2020 to prevent the spread of COVID-19. Nevertheless, company representatives held remote meetings with more than 130 investors and analysts and participated in ten online conferences, including for individuals, which had a beneficial effect on the investment community’s perception of the company.

Institutional investors’ views on Gazprom Neft according to the April 2021 Company Perception Survey.

Gazprom Neft is one of top companies in Russia’s oil and gas industry thanks to its management model, communication with investors on dividend policy and operational performance.
The wide range of upstream projects in the company’s portfolio and its secured position in refining favourably distinguish Gazprom Neft among Russia’s oil companies.

Analyst assessment of the company events in 2020

Positive factors Negative or neutral factors
FINANCE
Approval of a dividend policy establishing the dividend payout ratio at 50%
Ongoing payment of interim dividends
Net debt / EBITDA downgrade
Capital expenditure is driven by market volatility and the need to develop strategic projects
Neutral assessment of the effect of tax changes as the company will become one of the main beneficiaries of those changes
HYDROCARBON PRODUCTION
Flexible approach to project management, allowing for quick response to market changes
Reduction in per-unit operating costs
Restriction of liquid hydrocarbon production under the OPEC+ agreement
REFINING AND SALES
The ongoing refinery modernisation programme and implementation of various environmental initiatives Decline in refining volumes due to lower demand for petroleum products in the face of the COVID-19 pandemic
Consensus forecast for the Gazprom Neft PJSC target share price
Broker Analyst Date Recommendation Price (₽)
Renaissance Capital Alexander Burgansky 09.03.2021 Hold 370.0
Sberbank CIB Andrey Gromadin 19.02.2021 Buy 405.8
Sova Capital Mitch Jennings 19.03.2021 Buy 434.0
VTB Capital Dmitry Lukashov 06.03.2021 Buy 453.4
Aton Anna Butko 21.02.2021 Neutral 351.0
Goldman Sachs Heydar Mamedov 15.03.2021 Neutral 446.6
Gazprombank Evgeniya Dyshlyuk 27.02.2021 Neutral 364.0
Bank of America ML Karen Kostanyan 18.02.2021 Neutral 361.5
BCS Ronald Paul Smith 11.03.2021 Buy 427.6

Investor FAQ

What level of capital expenditure can be expected in 2021? What is the main driver of capital expenditure for you in the near future, in order of priority?

Next year, the company is targeting a capital expenditure level equivalent to that of 2020. We are, however, doing our best to be flexible in adapting the capital expenditure programme to address market demands, including the understanding that underinvestment at this point may lead to increased volatility going forward. That had been made possible for us thanks to our extensive project portfolio, which provides us with options.

The company’s priorities in terms of investment are its key major projects such as the Novoportovskoye field, where drilling is underway and the gas infrastructure is being put in place. Moreover, planned growth points for us are projects such as Zima, the Otdalennaya Group of Fields (OGF), the Tazovskoye oil and gas-condensate field and oil rims, which are being implemented under long-term risk-based operatorship agreements. All these projects have the potential to make a significant contribution to production and are planned within the existing infrastructure, which adds to their attractiveness.

Are there any plans to revise the company’s dividend policy in light of the economic instability caused by the pandemic?

Gazprom Neft’s Board of Directors approved the Regulation on Dividend Policy at the end of 2020, according to which the target dividend payout ratio represents at least 50% of IFRS net profit, subject to adjustments envisaged under thar Regulation. The company adheres to ensuring a balance between its strategic goals and interests of its owners.

Despite market volatility, the company paid interim dividends for the first nine months of 2020. The company intends to maintain the practice of interim dividend payments going forward.

What are the company’s plans in the area of ESG?

Gazprom Neft is active in the area of ESG and works hard to be at the cutting edge of that initiative. The company joined the UN Global Compact, the largest international initiative in the area of sustainable development and corporate social responsibility, in 2020. In addition to that, Gazprom Neft participated in this year’s Carbon Disclosure Project (CDP) ratings for the first time, and was awarded the highest rating of all Russia’s oil companies. Gazprom Neft is currently transforming its ESG strategy. The main driver of environmental impact reduction will be the increase in the share of gas production, as well as the development of technologies designed to reduce emissions.

The company had previously planned to reach production of 100 million tonnes of oil equivalent in 2020: how do you estimate production volumes for the year under review?

Despite the difficult market environment and the terms of the OPEC+ deal, we were able to achieve the same hydrocarbon production level at the end of 2020 as in 2019, namely 96 million tonnes of oil equivalent. Under the company’s long-term strategy, we expected to reach production level of 100 mtoe in 2020. If you look at the daily production equivalent figure, that level was reached in early spring, before the OPEC+ deal was agreed and signed. We therefore consider that this strategic goal for 2020 was achieved.

We support the decision to limit production: by increasing the cost of oil, we were able to efficiently produce smaller volumes. At the same time, we have diversified our production potential and investments with a focus on condensate and gas, which are not subject to OPEC+ restrictions.

How did the company act in the face of the COVID-19 pandemic?

Gazprom Neft was impressive in the way it met the unprecedented challenges of 2020. Thanks to the agile management model, important decisions were made on time, and Gazprom Neft quickly adapted to the rapidly changing external environment. The Antivirus programme was developed promptly and its implementation prevented disease outbreaks across company facilities. Over 70 different types of safety barrier were developed and put in place to prevent infection, some of which are still in use. Further, we supported the regions in which we operate by providing assistance to hospitals, refuelling ambulances and social-service vehicles at no cost, and supplying medical equipment.

We ensured a high level of protection against COVID-19 for employees, partners and customers, maintained continuity in all operational and production processes and the company’s financial resilience.