Gazpromneft or Rosneft which is better. What kind of gasoline should I use or how can I extend the life of my car? Which oil company is more reliable?
Igor Sechin "Rosneft" and Alexey Miller "Gazprom"
Four companies are vying for the Erginskoye field. The main struggle will unfold between Rosneft and Gazprom Neft.
Accepting applications for participation in the auction for Erginskoye oil deposit completed. Applications were submitted by Rosneft, its 100% subsidiary RN-Uvatneftegaz, Gazpromneft-Khantos (a subsidiary of Gazprom Neft) and Samara-based Pionergeo, the minister said on Friday natural resources Sergei Donskoy. “All applicants followed the procedure; deposits in the amount of the starting payment were transferred to the account of Rosnedra. The decision on admission will be made on July 3 based on an analysis of the application materials, which have not yet been opened,” he said (quoted by Interfax). These materials, in addition to the application, documents confirming payment of the deposit and fee for participation in the auction, include documents on financial, technical, technological and personnel opportunities applicant and involved contractors.
Why Rosneft submitted two applications is not clear. The representative declined to comment. Apparently, the company is thereby trying to increase its chances of success, says Sberbank analyst Valery Nesterov.
The subsidiary of the Independent Oil and Gas Company (NOC), Yugorskaya Neft, did not make a deposit, Donskoy added. Previously, Lukoil showed interest in participating in the auction. His representative did not respond to a request for comment. NOC could not be reached for comment.
Little is known about the Pionergeo company. The company was registered in Saratov in June 2015 and is headed by Alexey Prozorov, according to SPARK-Interfax. The main activity is management of financial and industrial groups. The sole owner of the Pioneergeo company is Sergey Neruchev. In 2015 you are the handle of the company with 5,000 rubles left, a loss of 102,000 rubles. The company could not be reached for comment. Neruchev himself different years headed the gas assets of Alrosa - Geotransgaz and the Urengoy Gas Company, according to SPARK-Interfax. Full namesake businessman hell about 2004. headed the Federal State Institution “GPNizhnev olzhskgeologiya” located in Saratov, in 2004–2005. worked as vice-governor of the Sakhalin region. “Kom mer sant” in 2005. wrote that the Saratov prosecutor’s office accused Neruchev of fraud in particular large size. “Pionergeo’s participation in the auction looks frivolous, unless it is backed by some large oil company,” Nesterov believes.
Fee for participation in the auction – 130,000 rubles. The auction will take place on July 12. Starting payment – 7.4 billion rubles. According to the terms of the competition, the winner will have to begin developing the field no later than two years from the date of receipt of the license and process all produced oil at refineries in Russia.
Erginskoye (reserves according to C1 + C2 – 103 million tons) is one of the last large deposits oil in the undistributed fund. On the territory of Erginskoye there is part of the Priobskoye field, the northern section of which is being developed by Rosneft, and the southern section by Gazprom Neft. Rosneft and Gazprom Neft need to increase their resource base, so the main struggle will unfold between them, Nesterov notes. “The outcome of the auction will depend not so much on motivation as on administrative resources. That is, this struggle will reflect the competition between Rosneft and Gazprom, and not Rosneft and Gazprom Neft. In his opinion, the starting price during the auction could increase 2–3 times to $250–400 million.
So, let's start from the beginning.
The main news of the beginning of this year: " January 1, 2013 entered into force in Russia ban on the circulation of Euro-2 fuel.
What does this mean? To paraphrase, gas stations in the country are now required to sell gasoline and diesel of Euro 3 class and higher.
Let me remind you that this transition to Euro-3 was approved by the Russian government back in September 2011. January 1, 2012 The technical regulations came into force and only Euro-3 began to be sold at gas stations. However, everyone forgot that Russian oil refineries are not ready to produce the new class of fuel in the required quantities. They began to purchase imported Euro-3 gasoline from Belarusians. In the country The fuel crisis has broken out!
At the beginning of 2012 prices at gas stations rose countrywide. The government rolled up its sleeves and decided on the transfer of technical regulations for another year. Strict instructions were issued to oil companies about the categorical need to increase production at EURO-3.
Agree, it's a sarcastic situation. They announced the transition, but were unable to check and analyze whether they were ready for it or not. Full cognitive dissonance =)
For reference:
Euro-3- an environmental standard regulating the content of harmful substances in exhaust gases.
In Europe they have been traveling to Euro-5 for a long time. Excerpt from regulatory documents: "The EURO 5 standard is mandatory for all new trucks sold in the European Union from October 2008. For passenger cars from September 1, 2009."
What are the differences between Euro-2 and Euro-5 fuels, you ask?
Firstly, they are different sulfur content, which affects the condition of the engine. Secondly, carbon dioxide emissions, which affects the environment.
The pictures show dynamics of transition to Euro 5 in Europe.
The top graph is for diesel.
The bottom graph is for gasoline.
By vertical axis we see the indicators PM (sulfur), horizontal axis NO (harmful exhaust gases). With the transition from Euro-2 to Euro-5, it is clear that gasoline is becoming low-sulfur and environmentally friendly!
We conclude that in Russia the transition to higher quality fuel has slowed down compared to Europe for 12 years!
Let's return to our realities. Since the beginning of 2013 We are already driving a higher quality EURO-3. But can we say that we are all now insured against the purchase “wrong” gasoline?
Car owners, as a rule, choose gas stations based on territorial principle: they stop for gas either on the way home, or, conversely, while rushing to work. But even if you use the services of a trusted station, it’s still You may stumble upon fuel of inadequate quality.
Low-quality gasoline leads to engine damage. For example, acids, alkalis, organic compounds affect detonation, the formation of soot, corrosion and, in general, the wear rate of the engine, as well as the toxicity of emissions.
Which gasoline is better?
I tried to categorize the producers according to the quality of the gasoline they sell based on the geographic location of the oil companies' oil refineries.
For example I take Moscow. In the capital there are gas stations of all Russian oil companies: Lukoil, Gazprom Neft, Rosneft, TNK, Bashneft. There are also independent gas station chains. We'll talk about them separately, but later.
State owned company Rosneft has factories: in Samara, Tuapse and the Far East.
To drive gasoline from Samara to Moscow by railway tank cars, you need to spend a lot of money to pay for transport. Accordingly, in order to “be in the market,” Rosneft produces low-quality gasoline to reduce the cost of the product.
Company Lukoil: factories in Volgograd, Perm, Vetlasyan. Lukoil is a company that was one of the first at the beginning of 2012 to be ready for the transition to EURO-3. This speaks of high quality product sold through gas stations.
By the way, Rosneft- in 2012 was practically not ready for the transition, because sold EURO-2.
Bashneft has factories in Ufa. The product is high-sulfur and is sold through many distribution networks.
There are situations when one oil company outbids a product of another oil company and takes this gasoline to its gas stations. For example, Rosneft during periods of crisis, they bought gasoline to their gas stations from Bashneft and Surgutneftegaz.
Therefore, when you arrive at a Rosneft gas station, you do not always fill up with Rosneft gasoline. This could be gasoline produced at a non-Rosneft plant.
Gazprom Neft. This oil company has a plant in Moscow. Accordingly, gasoline at Moscow gas stations comes directly from the plant. It is purchased fewer times and is not dumped into regional petroleum product storage facilities. The quality remains factory high. Gazprom Neft also has a plant in Omsk and Yaroslavl. From Yaroslavl Gazprom Neft also often brings in petroleum products for sale in Moscow.
TNK. Factories in Yaroslavl, Ryazan and Saratov. Refueling at beautiful gas stations TNK-BP in Moscow, you fill the tank with gasoline produced in Russia at, most likely, the Ryazan or Yaroslavl plants. British component (BP) this community is pure marketing.
About additives
Some time ago, supposedly new types of fuel began to appear at gas stations. For example, AI-95 Fora, Ecto, Super...
If we consider the production of AI-95 at a refinery, then the product is of the same quality in the same nomenclature. Well, they don’t produce AI-95 and AI-95 EKTO at the plant. Additives are added at oil depots, gasoline is mixed with detergents that improve the use of fuel. There is a risk when buying such “unclean” mixed gasoline. Please note that each brand (Lukoil, Rosneft, TNK) has its own marketing strategies for AI-95, which costs 1.5-2 rubles per liter more.
In addition, after refueling it is necessary look at the receipt where indicated entity Seller! Many independent gas station chains operate as franchisees under the guise of the Oil Company. When filling up at Lukoil or Rosneft you can find it on your receipt other legal entities.
Gasoline crisis in Russia:
Yes! This is a woman!
For the first time, the oil corporation's capitalization has surpassed Gazprom's on the London Stock Exchange. What does it change?
For the first time in history, the capitalization of Rosneft on the London Stock Exchange has overtaken the capitalization of Gazprom. According to trading platform, on Monday the value of the oil state corporation exceeded $51 billion, while the value of the gas state corporation was slightly below this mark.
Rosneft has overtaken Gazprom in terms of capitalization on the Moscow Stock Exchange. Reports of informal competition between the largest Russian companies appear regularly. For example, Rosneft argued in absentia with Gazprom over who pays more taxes to the budget.
General Director of FNEB“The stock market does not always reflect reality. If it reflected reality, there would be no “bubbles” in these markets, that is, it reflects speculative sentiment. In this regard, make capitalization the main criterion for the overall performance of a company, especially a Russian company, especially a Russian state company, which does not have such a large number of valuable papers quoted on the stock exchange, I think, is not entirely correct. Another thing is that Igor Ivanovich Sechin is in his well-known confrontation with Gazprom, and now the main topic is the reform of the gas market and permission for Rosneft to export gas. An important part of convincing Putin of the correctness of his arguments is demonstrating that Rosneft is cooler according to Sechin. Indeed, this includes whole set arguments: we are cooler because we pay more taxes. The next story with capitalization, which began a few weeks ago, is that Rosneft can overtake, has even overtaken. Then Sechin goes to Putin and talks about trillions of investments. We are simply dealing with a clash between two companies, each of which comes up with some additional arguments in order to paint themselves with the right colors, like in a coloring book. This situation kills me, amazes me - it’s hard to imagine that even in a country with a strong public sector, for two state companies they fought with each other."
Market reasons for the growth of Rosneft shares are associated with an increase in world prices for hydrocarbons, as well as with the upcoming privatization of the state stake in the company. As for Gazprom, the topic of its capitalization has been discussed for many years in a row. People usually remember the statement of the head of the monopoly, Alexei Miller. 8 years ago he assumed that Gazprom would now be worth a trillion dollars. Now we're talking about about 50 billion dollars. However, we are talking only about the stock exchange value of shares of Russian oil and gas giants.
The imminent parity of capitalization of Rosneft and Gazprom, which will supposedly change the “balance of power in the Kremlin,” was received neutrally in the expert community - you never know what grimaces the stock market is capable of. At the same time, many analysts, including the author of these lines, rightly saw in the seemingly ordinary message a hidden subtext aimed at fueling an imaginary confrontation between the largest state-owned companies.
The confrontational note (taken, I note, as a result of Bloomberg’s trivial communication with several Russian stock specialists) was immediately picked up by many publications. In addition to “changing the balance of power in the Kremlin,” every now and then we came across thoughtful conclusions about “friction” between Igor Sechin and Alexei Miller, about “historical castling” or about increasing “influence and lobbying opportunities.”
Why, leadership in capitalization, it turns out, will help Rosneft deprive Gazprom of its “monopoly on the gas export market”! According to this logic, Rosneft’s loss of primacy will lead to the return of the monopoly on gas exports to Gazprom. What can you write to support the ratings of publications?
However, Bloomberg is right on one point when he writes that “since Vladimir Putin came to power in 1999, he has used the country’s oil and gas wealth to rebuild the economy after the collapse of the 1990s.” Moreover, it is this passage that is cited most often in the foreign business press. To fulfill the task, Rosneft and Gazprom had to acquire state status, which was done in the 2000s.
And now, according to Bloomberg, the state can allow the painstakingly recreated oil and gas industry to begin to crack again, and even because of such insignificant reasons as a dispute between two long-time associates who lead commodity giants over the fate of the gas export monopoly! And the routine for competition “careful study of quarterly reporting, the level of taxes and contributions, dividend policy” is presented almost as a war of all against all.
Now about the essence of the news. IN Lately Gazprom's capitalization exceeds market valuation Rosneft by approximately $3 billion, while in 2008 the difference was more than $250 billion. However, such a comparison is not entirely correct: in 2008, Rosneft did not even think about acquiring TNK-BP, and the conflict between the Russian (more precisely, offshore) Alfa Access Renova and the British BP, two equal shareholders of TNK-BP, as they say, and there was no smell. Coincidentally, until 1995, when TNK was formed, its assets were part of the state-owned Rosneft.
It’s a different matter today, when the global raw materials industry exists in conditions low prices on commodities, and in relation to Russian companies- also sanctions. In addition, reduce the state's controlling share in both the united Rosneft and Gazprom below the controlling share Russian authorities don't plan.
In October 2015, Rosneft was the only Russian energy company included in the top ten of the traditional annual Platts rating. The company became tenth (Gazprom - 43rd), while a year earlier Rosneft took 6th place, and Gazprom - 4th. According to Platts, Gazprom suffered more than others from the devaluation of the ruble (a significant part of the concern’s production natural gas implemented within the country), which in turn led to certain difficulties in paying off debts in foreign currency and extending credit lines.
As you know, investors evaluate a company based, among other things, on its ability to generate cash. According to analysts at Morgan Stanley, Goldman Sachs and Merrill Lynch, Gazprom will have negative free capital in the coming years. cash flow, while for Rosneft this figure will grow. It is not surprising that all major investment analysts give recommendations to buy Rosneft shares and sell Gazprom shares.
Rosneft’s operating model also looks more effective in comparison with Gazprom’s. Reserves are growing, capital costs are decreasing, including through the use of internal oilfield services. The company not only manages to keep the growth of operating costs at a level below inflation, but also operating costs are more than one and a half times lower than those of its closest Russian competitor ($2.7 for Rosneft and $4.5 per barrel of oil equivalent for Gazprom Neft).
It is also important to note that Rosneft’s internal rate of return is more than 20 percent. Moreover, even in such a well-publicized Gazprom project as “Power of Siberia”, the rate of return is negative. And this cannot but put pressure on the shareholder value of companies. By the way, despite the fact that Rosneft supplies gas to the domestic low-margin market, the rate of return on its gas projects exceeds 20 percent, while Gazprom’s does not reach 15 percent, although a significant part of the gas monopoly’s fuel is exported.
In general, investors focus on business growth. And when Gazprom has been reducing production for the second year in a row, it is not surprising that its capitalization is shaking. As for the investment attractiveness of Rosneft, recently it has become less and less dependent on crisis phenomena and sanctions confrontation. This is evidenced by the prepayment from Chinese partners for future oil supplies, which, in fact, has become an alternative form of financing, as well as the investments announced today Indian companies more than $2 billion in joint development of East Siberian fields or significant interest in the possible privatization of 19.5 percent of Rosneft shares, which is expected to take place this year.
However, these and other factors will not lead Rosneft to leadership in market capitalization. At least for the foreseeable future. After all, it is necessary to compare, and this is the essence of the material, only those players that operate in the same, or at least approximately equal, financial and economic conditions. In our case, we compare companies, one of which (Gazprom), in addition to a monopoly on gas exports and a quasi-monopoly on its production, has considerable customs, tax and administrative preferences, while the other (Rosneft) exists in severely competitive conditions, fiscally no different from the bakery around the corner.
Moreover, unlike Gazprom, which practically did not think about increasing its Soviet heritage, Rosneft grew through acquisitions, and, we emphasize, market price. And the last thing that, oddly enough, analysts who evaluate capitalization forget about is that Rosneft, again unlike Gazprom, is under sanctions, and if only for this reason, comparing the capitalization of the two companies is a thankless task.
