How Igor Sechin's Rosneft is getting more expensive

Rosneft's President Igor Sechin believes that the company's capitalization is growing. However, over the past year, despite the consolidation of TNK-BP and other purchases, the state company went down by 8.1%.
Over the past year, if we assume about 18% of the growth we have given, "January 24 - boasted the president of" Rosneft "Igor Sechin at a meeting with Prime Minister Dmitry Medvedev at how increased capitalization of oil company (by quote). Mean score of capitalization for the period from 23 July 2012 to 24 January 2014, said the representative of "Rosneft". Why was this particular period is taken, he said.

From July to the end of December 2012 the shares of "Rosneft" increased by 27%. At that time, the company negotiated a purchase of TNK-BP: July 24, she informed BP of its interest in the acquisition of shares, and in October, AAP has agreed to sell her his.

Government Office prepares materials for the meetings only when the subject is known in advance, and it was a working meeting and is responsible for the correctness of the data reporter, said a spokesman for Prime Minister Natalia Timakova. To argue, could the Prime Minister Sechin intentionally enter into error, and for what purpose, she refused.

On Friday in Moscow, the company was worth 2.6 trillion rubles in London -.. $ 72.7 billion during the year that has elapsed since 24 January 2013 to 24 January 2014, "Rosneft", onturnover fell on the Moscow Stock Exchange and on the London (see. chart). During this period became cheaper oil, and other oil companies. Largest private Russian oil company "Lukoil" fell by 14.8% to $ 48.1 billion. But the world's largest companies ExxonMobil, on the contrary, even added to the price (see. Chart). And the largest Russian company - "Gazprom" - fell by 12% to $ 100.6 billion.

In January 2013, President Vladimir Putin meeting Sechin already talked about capitalization growth, and that the company is worth about $ 92 billion. "This is based on growth stocks, such a big, good production, increasing production, in view of the large acquisitions of significant assets Of course, the capitalization would be higher, - Putin said at the time. - I think it has all the prospects to grow at least to $ 100-120 billion "(in quotation Sechin agreed with him, saying that the level of capitalization of the company perceives as indicative in 2014. According to Sechin, $ 120 billion - this is a fair assessment of the company. "We will try to reach this goal as a result of the completion of the merger and as a result of work on the projects, the company is implementing at the moment ", - he assured Sechin. The fact that the capitalized "Rosneft" will grow, and he assured Medvedev on Friday.

Over the past year, "Rosneft" aggressively grow - primarily due to acquisitions. In 2013, she closed a deal to buy TNK-BP, bought 100% of the gas company "Itera" has acquired a stake in Enel "Severenergia", and then exchange it for a 51% stake in "Sibneftegaz". There is information that the state-owned company is interested in buying other independent players - "Bashneft", NK "Alliance". Oil company aims to become a significant player in the gas market (the plan for 2020 - to produce 100 billion cubic meters of gas.).

But investors' ambition of "Rosneft" can be confusing: many projects, overgrown investment program (Plan for 2014 - 600 billion rubles, as in 2013.), Rumors of further acquisitions, the high debt load (at the end of September, total debt - 2 4 trillion rubles.), says co-director of "Investkafe" Gregory Birg. In the coming years the company will be more difficult to contain the fall in production from older fields (bythe main asset of the company - "Yuganskneftegaz" in 2013 production fell by 0.9% to 66.2 million tons, according to CDU TEK). To capitalization has grown, "Rosneft" is necessary to reduce the debt burden, to realize synergies from the merger with TNK-BP, to develop the gas segment and to confirm the resource potential of the Russian shelf, lists Birg.