Russiaa s Gazprom sees earnings halved in 1H on lower prices, sinking demand

As with most monopolies they are inefficient. It would be better for this company to be broken up into smaller pieces but the corruption/red tape of Russia's bureaucracy won't allow it. Monopolies just suck in gerneral

American Dood wrote:

As with most monopolies they are inefficient. It would be better for this company to be broken up into smaller pieces but the corruption/red tape of Russia's bureaucracy won't allow it. Monopolies just suck in gerneral

Well GAZPROM doesn't have the monopoly of gas production or distribution.
The loss of profit is due to the lower price of gas on the world market, and the Ukrainian stand-off last January.

Also, you regurgitate the same thing about "the corruption/red tape of Russia's bureaucracy" without knowing what you are talking about.

Robespierre wrote:

<quoted text>
Well GAZPROM doesn't have the monopoly of gas production or distribution.
The loss of profit is due to the lower price of gas on the world market, and the Ukrainian stand-off last January.
Also, you regurgitate the same thing about "the corruption/red tape of Russia's bureaucracy" without knowing what you are talking about.

They are a state controlled monopoly, they do. Its common knowledge
(http://www.dailyreckoning.com.au/gazprom-mono... )

Most gas/oil tends to be monopolistic, if you really look into it only a handful of companies control the fuel market. Gazprom has huge support from the legislature and can grow at a ridiculous pace with state capital, but it comes at a price. Gazprom is not that efficent it wastes a lot of money due to corruption and non-modern equipment (probably stemmed from the corruption). Most western natural gas companies are making huge money even at these prices, gazprom should be too.

American Dood wrote:

<quoted text>
They are a state controlled monopoly, they do. Its common knowledge
(http://www.dailyreckoning.com.au/gazprom-mono... )
Most gas/oil tends to be monopolistic, if you really look into it only a handful of companies control the fuel market. Gazprom has huge support from the legislature and can grow at a ridiculous pace with state capital, but it comes at a price. Gazprom is not that efficent it wastes a lot of money due to corruption and non-modern equipment (probably stemmed from the corruption). Most western natural gas companies are making huge money even at these prices, gazprom should be too.

Look at Artikgas, Soyuzneftgas, TNK-BP, Rosneft, Tafneft, Baltic LNG, Sakhalin Energy, that are also Russian gas companies; GAZPROM doesn't have monopoly, although it's the largest.

GAZPROM is also not nationalised, it was privatised in the 90s, to become a 'Joint-Stock Company' under Russian business legislation. I don't think that the state holds more than 30% of the shares, although it may have controling interest (i.e. Golden share).

GAZPROM is loosing money because of increasing exploration costs, at a time when the gas market is dipping and prices following. Most energy exploring companies have suffered the same problem, including BP and Shell.