|
Gazprom’s financial and economic policy is aimed at increasing profits and enhancing the company’s financial stability, it is said in the company’s documents prepared for a briefing “Financial and economic policy of Gazprom”. In 2003, Gazprom’s sales profits jumped 54 percent and its net profit climbed 64 percent, in accordance with Russian accounting standards.
The gas company managed to take out cheaper loans in foreign currency last year, which allowed it to restructure its short-term debts. As a result, the percentage of short-term loans (up to 1 year) in Gazprom’s debt portfolio dropped to 33.7 percent by the end of 2003.
At the same time, the percentage of long-term debts (more than 5 years) increased almost threefold to 30.99 percent last year. Gazprom received export credits under the guarantee of export credit agencies, which allowed it to reduce borrowing costs by 1.5-2 percent compared with bank loans secured by export proceeds. The average borrowing cost was dropped from 8.44 percent in 2001 to 7.38 percent in 2003.
Gazprom’s general meeting is set for Friday, June 25. A new Board of Directors will be elected at the meeting.
|
RUSSIA IN FACTS
