Gazprom's shares will continue to emerge from their long-standing valuation trap.
Far from it being a once-in-a-decade break, last April's announcement of a 'proper' dividend - and this month's guidance on the new dividend policy in the works - are part of a broader improvement in the outlook for shareholder value creation. As we have seen, this encouraging trend spans business strategy, management quality and tighter procurement procedures. For the most part, this boils down to better corporate governance, where potential gains are all the greater for coming off a notoriously low base. In short, the favourable valuation rating trend looks sustainable.
Having already gained 50% since our call in March, Gazprom's stock gained a further 10% rising from 232.83 ruble at time of publication to a peak of 255.35 ruble on 4th of July. MICEX gained 4% over the same period.