Surgutneftgaz oil shares rise dramatically

RUSSIA / FSU POLITICS - In Brief 28 Oct 2019 by Alex Teddy
Between October 23 and 25 shares in Surgutneftgaz rose 25%! Shares in the company also rose very fast at the beginning of September. The September rise was just after Surgutneftgaz registered a subsidiary called Rion to invest in securities. Surgut is the third biggest oil producer in Russia. The company produces about 10% of the country's oil. Even though it is a major player the ownership structure remains unknown. The public has no idea who the company's main shareholders are. The CEO is Vladimir Bogdanov. He says the identities of the owners are a mystery to him. The word on the street is that top governmental officials are the beneficial owners.When Rion was set up people expected the company to use its cash reserves worth USD 50 billion in the last few months of 2019. Until then the company had not done anything with its cash to invest in its infrastructure or buy more oil fields abroad or even pay better dividends. The one exception was 2008-12 when it was reluctantly part of a consortium that was involved in PDVSA in Venezuela. A former Deputy Energy Minister said that Surgut is 'a private stabilization fund'.Surgut's CEO said the share jump is not due to any new strategy but is because of speculators.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.