OREANDA-NEWS. Veles Capital, an analytic and investment agency, dislosed that according to vice chairman of the company Valeriy Golubev, second time in a row this year Gazprom cuts extraction plan of 2007, this time to 551 bln cu m. The initial plan of extraction provided for 561 bln cu m, later on this value was reduced to 557 bln cu m. According to V. Golubev, the reasons for the decrease of extraction are warm winter, low demand for gas and low use of gas from underground storages, which are currently overstocked. It was planned that by the heating season beginning, when using of gas from storages starts, they must be stocked to 61.5 bln cu m, while in reality they hold over 63 bln cu m. According to May data, Russian producers of 'blue fuel' negotiated with Gazprom, later announcing a reduction of the extraction to compensate for drop of gas consumption at domestic and foreign markets, after which Gazprom decided to reduce extraction by 4 bln cu m from firstly planned 561 bln cu m to 557 bln cu m.

Gazprom's 2006 consolidated gas extraction amounted to 556 bln cu m. The decrease of extraction directly affects correction of financial model, altering primary financial estimates of company. The experts' corrected model now includes new data: a decrease of sales by 0.9-1% at year's end, decrease of EBITDA value by 1.1% to 38,840 bln USD, and, last but not least, a decrease of profit by 1.2% to 23,985 bln USD. Fair price will not be affected by the decrease of extraction, as the model is using forecast of the extraction up to 2020, at 670 bln cu m, which is currently unaffected, as the decrease was caused by extreme season factor and is unlikely to become constant. This is also confirmed by V. Golube's statements that planned extraction value of 2008 will exceed 560 bln cu m, the experts point out.