Russia's Gazprom becomes world's third most expensive company

The Russian gas giant Gazprom has beaten such companies as China Mobile and General Electric in the market capitalization and now it has taken the third place in the rating of world’s most expensive public corporations, the Bloomberg said.

Photo: Russia's Gazprom becomes world's third most expensive company

By the noon of May 8 shares of world’s largest gas producer increased by 4.2 percent. Thus, the company’s total capitalization amounted to 8.12 trillion rubles (340 billion dollars). China Mobile, world’s largest mobile operator, costs 337.2 billion dollars, while the value of General Electric reaches 325 billion dollars.

Two oil companies, Exxon Mobil of the USA and PetroChina of China, have the biggest capitalization. They are estimated at 476 and 441 billion dollars respectively.

A spike in the Gazprom shares coincided with Dmitry Medvedev’s assumption of presidency and Vladimir Putin’s appointment as the Prime Minister. The Cabinet reshuffle is considered to allow Gazprom to continue working in close contact with the government, for Dmitry Medvedev headed its Board of Directors until May of 2008.

High prices of energy carriers on the global market can also account for surging capitalization of Gazprom. The company, half of which is owned by the government, specializes in gas production and sale, as well as in oil production. In 2005 Gazprom bought Roman Abramovich's oil firm Sibneft. Later the company was renamed as Gazprom Neft.

Source: agencies

Translated by Julia Bulygina
Pravda.ru