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. Last Updated: 07/27/2016

Gazprom Stock Hits 3-Year Low

Gazprom's stock hit a three-year low, making it one of the cheapest oil and gas companies in the world.

The company's shares fell Tuesday but rose 2.8 percent Wednesday onthe Moscow Exchange, closing at 137.18 rubles ($4.56) and sending thestate-owned giant's capitalization to$108 billion.

The company's share price has tumbled almost 30 percent ina year, analysts atUBS said. Forcomparison, ExxonMobil is valued at$406.4 billion, Petrochina at$330.1 billion andShell at$262.5 billion, Vedomosti reported.

Analysts attributed thesharp decline inpart tomarket nervousness about ballooning capital expenditures. Thecompany originally planned tospend $777 billion in2012, but it confirmed outlays of$975 billion inOctober.

More important, however, are falling dividends, said UBS analyst Konstantin Cherepanov. Gazprom paid out 166 to189 billion rubles, or about 7 to8 rubles per share, in2012, down froma record 212 billion rubles individends in2011.

Gazprom has been facing difficulties both athome andabroad inrecent years, with European clients seeking torenegotiate long-term supply contracts andrival Novatek proving anincreasingly aggressive competitor inthe domestic market.

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