Lukoil Value Overtakes Rosneft, Gazprom

Russia’s largest privately owned oil company Lukoil has outstripped the state-run oil and gas companies Rosneft and Gazprom by market capitalisation, Moscow Stock Exchange data showed March 28. This is the first time it has done this and it now comes in second place, after state-owned Sberbank.

Lukoil’s shares hit an all-time high of rubles 3.326 trillion ($57.78bn), while Gazprom was worth rubles 3.315 trillion and Rosneft was worth rubles 3.247 trillion as of midday Greenwich meantime. The financial services giant was then worth rubles 5.7 trillion.

Lukoil plans to increase sales gas production by 22.2% to 22bn m³/yr by 2027, the company said in its strategy of balanced development March 23. It will invest $8bn on its projects this year.

Gazprom's capitalisation overtook Rosneft on March 12, with rubles 3.376 trillion, compared with Rosneft’s rubles 3.322 trillion.

Gazprom had been top of the tree for years until 2016 when it was beaten by Rosneft, and last year Sberbank broke into the leadership position. Gazprom suffered badly from the fall in the oil price in 2014, slashing the value of its exports the following year and forcing it to refund billions to customers in Europe. It has also had to link its gas price to hubs, enabling it to cash in on price spikes but not from the relatively strong oil price now. 

Source: Ria Rating