Business

Russia's Gazprom sees 2021 EBITDA rising 50% to $30 bln

2 minute read

The logo of Russian gas giant Gazprom is seen on a board at the St. Petersburg International Economic Forum (SPIEF), Russia, June 6, 2019. REUTERS/Maxim Shemetov/File Photo

MOSCOW, June 16 (Reuters) - Russian gas giant Gazprom (GAZP.MM) said on Wednesday it expects its 2021 core earnings, or EBITDA, to rise by 50% in year-on-year terms to $30 billion, and is planning to attract project financing to reduce the company's debt burden.

Its politically charged Nord Stream 2 undersea gas pipeline is now fully financed, Gazprom Deputy Chief Executive Famil Sadygov told journalists on Wednesday, and is not part of Gazprom's plans for project financing.

Gazprom has cut its initial borrowing plan for the year by 100 billion roubles ($1.39 billion) to 411 billion roubles but is planning a Eurobond issue soon, looking at the euro, U.S. dollar and Swiss franc as possible currencies, Sadygov said.

The company is also planning to issue a perpetual bond of 150 billion roubles before the end of the year.

Gazprom, which is forecasting a net debt to EBITDA ratio of 1.6-1.8 this year,is planning to raise financing for the development of its joint project with Wintershall Dea [RIC:RIC:WINT.UL] by the end of next year, Sadygov said.

"Project financing is planned for 2022 for our large gas processing complex in Ust-Luga," Sadygov said. "Financial consultants - VEB and Gazprombank - are preparing models and final options for financing opportunities."

Sadygov said the most likely option was 30% equity financing and 70% borrowed funds.

Gazprom is considering attracting project financing for projects at the Tambeyskoye, Layavozhskoye and Urengoyskoye fields, Sadygov said, an approach that will help the company reduce its debt burden.

Gazprom is not planning a secondary public offering (SPO) or an additional share issue, Sadygov said.

Nor is it currently planning to reduce its 9.99% stake in Novatek (NVTK.MM), Sadygov said, adding that the company does not rule out the latter option when market conditions become more favourable.

($1 = 71.9300 roubles)

Reporting by Oksana Kobzeva; Writing by Alexander Marrow; editing by Louise Heavens

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters