By now, we have at our disposal a consensus forecast compiled by multiple analysts: in 2022–2024, gas prices in the world’s markets will gradually drop from the current record levels, but they will remain much higher than the pre-COVID figures.

In our budget planning activities, we use a cautiously conservative approach: the Gazprom Group’s key financial indicators must be kept at an appropriate – and rather high – level even if the export prices for gas are very moderate by today’s standards.

For instance, the average export price for gas included in Gazprom’s budget for 2021 is USD 250 (this price is calculated on the basis of all our foreign exports: Europe, China, and the CIS). However, we expect the actual figure to be over USD 280.

Thanks to the well-balanced structure of our export contract portfolio, the average price of supplies in 2022 will be higher than the one in 2021 even if spot prices decline significantly compared to the current levels.

This state of affairs enables us to predict with great certainty that the key financial indicators will grow next year. Under the most probable scenarios for 2022, the Gazprom Group’s EBITDA may go above RUB 4 trillion; net profit under the same circumstances may exceed RUB 2.5 trillion. Therefore, we expect the record-high financial indicators achieved in 2021 to be surpassed in 2022.

Without a doubt, this will be aided by the development of our key projects, such as the growth in gas supplies to China via the Power of Siberia gas pipeline and the expansion of the Amur GPP’s capacities.

In keeping with the Company’s declared development strategy (which is well known to our shareholders and investors!), we will continue to pursue a number of other key projects, including those related to the production complex, i.e. the Kharasaveyskoye and Semakovskoye fields, and the Achimov formations. The expansion of the production capacities is synchronized with the construction of the relevant gas transmission infrastructure.

In parallel, as part of our efforts towards developing the gas processing segment, we are building the Complex for processing ethane-containing gas near the settlement of Ust-Luga jointly with RusGazDobycha.

Objectives pertaining to the financing of the program for gas supply and gas infrastructure expansion in Russian regions are high on our agenda.

All in all, we expect capital expenses across the Gazprom Group in 2022 to amount to a little more than RUB 2 trillion (net of VAT) and hover around that level in the next few years. Please note that investment costs are under some pressure from the inflation processes that are now intensifying both in Russia and in other countries.

I would like to reiterate that it is a prerequisite for the drafting of the 2022 budget and the forecast for the years 2023 and 2024 that the positive free cash flow be generated with due consideration of the dividend payout to be carried out, and with the net debt/EBITDA ratio kept within the comfortable range (1–2) for each year.

To sum it up, based on the indicators embedded in the budget for 2022, we are confident that Gazprom is going to retain its stable financial position in spite of the record-high dividend payout based on the results of 2021.