Interfax: Gazprom totally undervalued, time could be right to buy back shares – deputy CEO

MOSCOW. Jan 29 (Interfax) – Gazprom (MOEX: GAZP) is not just undervalued, it is totally undervalued, the Russian gas giant’s deputy CEO, Alexander Medvedev, said in an interview with the Rossiya 24 TV channel.

“Perhaps now is the very best time to buy back shares,” which could later be sold on the market, Medvedev said.

This is Gazprom’s first official comment on the prospect of a share buyback.

A source at the Russian gas giant told Interfax last week that the company was thinking of buying back shares on the market. “Gazprom is thinking of buying back its own shares on the market and is looking closely at ExxonMobil’s experience of this,” the source said.

This is the first time Gazprom has suggested it might adopt a more active stance with respect to its capitalization. In the past, managers have linked trends in its share value with the policy of the regulators and the macroeconomic environment.

Gazprom launched a new options program for management this year. Some managers have already reported buying millions of rubles worth of stock.

ExxonMobil spends tens of billions of dollars buying its share back from the market. It earmarked $17 billion for this in the last four quarters.