Gazprom may cut its 2020 investment program to RUB 922 billion.

Gazprom may cut its 2020 investment program to RUB 922 billion.

Gazprom may cut its 2020 investment program to RUB 922 billion.

The Gazprom (MCX: GAZP) board proposes to reduce the 2020 investment program for the parent company, PJSC Gazprom, from the initial RUB 1,104.72 billion to RUB 922.489 billion, the company said.

Including 720.674 billion rubles were allocated for capital construction projects. (a decrease of 212.729 billion rubles), for the acquisition of non-current assets into the ownership of PJSC Gazprom – 105.793 billion rubles. (an increase of 15.821 billion rubles). The volume of long-term financial investments – 96.022 billion rubles. (an increase of 14.673 billion rubles).

“The adjustment of the parameters of the investment program for 2020 is associated with a change in the external market situation, including against the backdrop of a new coronavirus infection pandemic,” the company writes.

Now the new version of the budget will be considered by the PJSC Board of Directors.

The amount of financial borrowings (excluding intra-group borrowings) will amount to RUB 501.287 billion. (a decrease by 56.482 billion rubles). In addition, operating expenses as a result of cost optimization measures will decrease by RUB 297.1 billion.

In 2020, Gazprom has already placed bonds for $ 2 billion, 1.5 billion euros and 30 billion rubles, and also attracted loans for 600 million euros – a total of 358 billion rubles. Thus, the new borrowing limit has already been fulfilled by 71%.

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