21 May 2013 11:44
RELEASE
21.05.2013
Gazprom taking measures to increase its capitalization
The Gazprom Board of Directors took notice of the information on measures to increase the Company's capitalization.
It was mentioned that at present Gazprom's shares as well as the whole Russian stock market, were strongly underestimated by the investment community. It is largely due to the high uncertainty in the global financial market and the risk of global deceleration of economic growth.
Under such complicated market conditions Gazprom takes comprehensive measures aimed at increasing the Company's capitalization. In 2013 Gazprom adopted the Order on Arranging Activities to Improve the Corporate Governance in Gazprom, as well as the Order on Arranging Activities on Information Disclosure in the Message Form. Their objective is to increase the Company's transparency and investment attractiveness. In the framework of these documents Gazprom implements a number of measures in several key areas of activity.
In particular, with a view to achieve higher information transparency the work is underway for increasing the scope of information disclosed on Gazprom's activities. The Company also improves the quality and timeliness of information disclosure, for instance, stepping up the release of financial statements.
In addition, the Company jointly with specialized organizations has started auditing the corporate governance practice existing in Gazprom. It is necessary for its further improvement and receiving the National Rating of Corporate Governance by the Company.
Another important line of activity is the listing on the MICEX Stock Exchange. Including Gazprom's shares into the quotation list of securities qualified for trading in the MICEX Stock Exchange will make it possible to lift restrictions on the acquisition of the Company's shares by Russian institutional investors, namely pension and investment funds and insurance companies. It will boost the confidence in Gazprom's securities and provide for increasing the share of Russian financial structures among the Company's investors.
Gazprom also takes considerable efforts to build up long-term relations with representatives of the investment community. In particular, regular conference calls and meetings with the Company's top managers are held for them. Direct interaction with Gazprom's management enables the members of the investment community to get up-to-date in-depth information regarding the Company's development strategy, plans and latest achievements.
In recent years Gazprom has been taking sustained efforts aimed at enhancing transparency and predictability of dividend payments to shareholders. The new dividend policy of the Company adopted in 2010 made the calculation methods more comprehensible and the proportion of Gazprom's investment and the shareholders revenue became more balanced. Gazprom's activity targeted at increasing the profit percentage for the dividends payout is positively appreciated by the investors. Due to it the Company's shares remain the most liquid securities in the Russian market.
Gazprom is not satisfied with what has been achieved and keeps on improving the dividend policy. In particular, the Company considers a possibility of using the consolidated net income under the IFRS as the basis for dividend calculation.
Moreover, Gazprom takes an active part in streamlining the Russian legislation in order to improve the investment climate and the rights of investors and ADRs holders and, consequently, to increase the Company's capitalization.
The Gazprom Board of Directors tasked the Management Committee to carry on with the measures of increasing the market capitalization of the Company.