Gazprom expects continued profitability of gas exports even at low prices in Q2 2020 - Sberbank CIB
MOSCOW. May 29 (Interfax) - Gazprom expects gas exports to remain profitable even at low prices in Q2 2020, Sberbank CIB analysts said following a conference call with Gazprom on European gas markets.
"The company expects to retain the profitability of gas exports even amid low prices in the second quarter owing to low operating costs," the investment bank's analysts said.
"Export prices for 2020 are projected at $133 per thousand cubic meters. Prices for the portfolio of contracts are based mostly on prices for the month/quarter/season ahead. Prices for the day ahead apply only to 3% of the company's long-term portfolio. Total portfolio prices suggest a premium of approximately $1/million btu to the prices for the month ahead," the analysts said.
"A scenario of negative gas prices is considered unlikely," Sberbank CIB said, citing Gazprom's point of view.