Rosneft goes for gas

摘要

The RTS index closed at 1,615 points, down by 1pc over the week. Bank Uralsib says a new joint venture between Rosneft (51pc) and independent gas producer Itera (49pc) ?which was approved by Russia's federal anti-monopoly service (FAS) this week ?will boost Rosneft's proven gas reserves by 17pc and its total hydrocarbon reserves by 4pc. "This will increase Rosneft's gas production by around 50pc to 20bn m3/yr," the bank says. The value of the deal remains undisclosed, but Uralsib expects it to cost Rosneft $1.5bn-2bn ?which it says is a more or less a fair amount ?adding that the joint venture has the potential to lift the firm's 2013 earnings before interest, taxes, depreciation and amortisation (Ebitda) by up to 2pc. "In terms of long-term prospects, we welcome Rosneft's endeavours to develop its gas business, especially against a backdrop of stagnating oil production," Uralsib says, giving Rosneft a buy recommendation and a target price of $8.60/share.