Gazprom committed to constructive dialogue with investment community
The Gazprom Board of Directors commended the Company’s efforts with regard to investor and shareholder relations. The Management Committee was instructed to take further measures for improvement in that respect.
It was noted that the strengthening and development of long-term and constructive cooperation with the investment community was essential to boosting the Company’s investment attractiveness, increasing its market capitalization, and lowering the cost of its borrowings.
Gazprom continues to make efforts for greater openness and transparency, regularly arranging conference calls for investors and shareholders with the Company’s top executives, as well as holding meetings in Russia and other countries where most of the existing and potential investors are based.
Gazprom organizes study visits to the Group’s industrial and infrastructure facilities. During the visit to the Chayandinskoye field and the Power of Siberia gas pipeline site in 2016, the Company expanded the format of cooperation by holding a thematic roundtable that involved Gazprom’s executives and professionals, independent international experts, and over 60 investors and analysts.
The number of meetings between Gazprom’s representatives and investors in the course of investment conferences in Russia and abroad continues to grow: it went up by a quarter in 2016 compared to 2015.
Thanks to direct and systematic communication, the Company can promptly furnish financial market participants with relevant and correct information on all important developments concerning Gazprom’s businesses. The success of this practice is demonstrated by the fact that investors and shareholders show persistent interest in meeting with Gazprom’s executives and give optimistic estimates of the prospects for investing in the Company’s securities. Most analysts of major Russian and foreign investment banks recommend to ‘buy’ and to ‘hold’ in their analytical reports on Gazprom’s shares.
Gazprom’s debt instruments are in high demand. In 2016–2017, the Company placed Eurobonds at the lowest interest rates compared to other Russian companies, with the investor demand far exceeding the offer.
The Investor Day is one of Gazprom’s most ambitious annual events. In 2017, it was the second time that the Investor Day was held successfully in Asia-Pacific, namely in Singapore and Hong Kong. The aforementioned venues were chosen in view of Gazprom’s extensive efforts aimed at diversifying its investor pool and financing sources in the region.
Gazprom pays great attention to improving its corporate governance practices. In 2016, as resolved by the Board of Directors, the Company created a Corporate Secretary unit, established a Nomination and Remuneration Committee, and elected a new Audit Committee chaired by an independent director. Independent directors hold two of the three seats in both Committees.
In January 2017, the Moscow Exchange confirmed that Gazprom had fulfilled all quality requirements for corporate governance to retain its position on the top-tier quotation list.
The Company is committed to promoting efficient dialogue with the investment community. Gazprom will continue to strengthen its cooperation with investors from the U.S., Europe, Asia-Pacific, and other regions, as well as with participants of international debt markets, to explore the ways of improving its dividend policy, and to increase the transparency and quality of its corporate governance practices.