OAO Gazprom, Russia’s state-run natural gas exporter, dropped to the lowest level in three months after the board approved a 25 percent increase in spending this year to finance new pipelines and fields.
The shares fell as much as 2.6 percent and closed down 2.4 percent at 147.12 rubles in Moscow, the lowest since July 25.
“The trend remains, their capital expenditures will increase given the fact that they are starting construction of a pipeline in eastern Siberia and development of the Chayanda gas field,” Lev Snykov, a partner at Greenwich Capital in Moscow, said by phone today. “One can’t count on lowering capex.”
Gazprom’s board today approved a revised, 975 billion-ruble ($31 billion) budget for the year, the Moscow-based company said in an e-mailed statement today. The program, which is 25 percent higher than the initial plan adopted in December, includes 890 billion rubles of capital expenditure on gas production, transportation and storage projects.
Russian President Vladimir Putin reviewed Gazprom’s $45 billion eastern gas program yesterday, including a pipeline from eastern Siberia to the Pacific, development of the Chayanda field and a liquefied natural gas plant in Vladivostok.
To contact the reporter on this story: Anna Shiryaevskaya in Moscow at email@example.com