record profit
Gazprom’s board of directors approved a notable milestone for the company’s investors by recommending an interim dividend of 51.03 rubles per share for the first half of 2022. This recommendation arrived despite ongoing sanctions and a challenging external environment that affected the global energy landscape. The decision highlighted Gazprom’s ability to deliver solid cash flow and maintain a shareholder-friendly approach even amid geopolitical headwinds that have shaped gas export dynamics in 2022.
Following this guidance, Gazprom’s shareholders were invited to convene at an extraordinary general meeting scheduled for September 30, when the dividend proposal would be put to a vote. The outcome of that vote would determine whether the interim payout would proceed as proposed, marking a key moment in the company’s capital allocation strategy for the year ahead.
Previously, at its general meeting in June, Gazprom decided to suspend the dividend distribution corresponding to fiscal year 2021. The suspension involved a substantial total sum of 1.24 trillion rubles, equivalent to about 20.27 billion euros, calculated at a per-share rate of 52.53 rubles. The decision reflected the company’s emphasis on preserving liquidity and reinforcing balance sheet strength in a period of extended macroeconomic stress and sanctions-related headwinds that affected energy markets globally.
record profit
Gazprom’s vice president, Family Sadigov, communicated to Russian media channels that, despite external pressures, the company achieved record revenues and profits in the first half of 2022 while keeping debt levels well managed. In his remarks, he underscored how the firm navigated sanctions and a difficult external climate to reach these financial milestones, emphasizing the importance of liquidity and disciplined capital management in sustaining the business through a volatile period.
According to the company’s financial statements, Gazprom reported net profit of 2.5 trillion rubles for the six-month period, a figure that translates to roughly 40.86 billion euros. This compares with approximately 968.5 billion rubles (about 15.83 billion euros) earned in the same period of the previous year. The year-over-year improvement in profitability reflected improved operational efficiency, favorable gas export dynamics in certain markets, and the ability to manage costs and leverage favorable pricing environments where available, all while navigating the broader sanctions regime that affected energy exporters globally.
In commenting on the financial results, the Gazprom board of directors reiterated the intention to pursue a dividend policy that remains favorable to shareholders. The guidance called for a dividend payment of 51.03 rubles per share for the first half of 2022, a level that would provide a clear payout signal given the company’s solid liquidity position. The board also highlighted the importance of maintaining a comfortable liquidity cushion to support ongoing operations, strategic investments, and potential future dividends under varying market conditions.
Looking ahead, the management indicated a commitment to a dividend framework that, while flexible, aims to share a meaningful portion of adjusted net profit with shareholders. This approach aligns with Gazprom’s broader objective of balancing immediate shareholder support with the long-term financial health of the company, ensuring resilience in the face of sanctions, market volatility, and evolving regulatory landscapes across different regions. Investors and market observers will be watching how the proposed interim payout, combined with the company’s earnings trajectory, influences investor confidence and capital allocation decisions in the near term.