By Toby Shute October 9, 2007
If ExxonMobil (NYSE: XOM) is a 10, OAO Gazprom (OTC BB: OGZPY) weighs in on the freaking huge scale at about an 8. The Russian giant supplies about one-third of Western Europe’s natural gas imports. It also accounts for roughly one-fifth of global production.
With more than 400,000 employees — about four times as many as BP (NYSE: BP) or Royal Dutch Shell (NYSE: RDS-A) (NYSE: RDS-B) — you’d think Gazprom would have the resources to release first-quarter earnings sometime earlier than October. This isn’t the result of a funky fiscal year — I’m talking about January through March. Oh, well — let’s take a look at how the firm was doing three quarters ago.
Gazprom rakes in some serious rubles. Sales for the quarter rose over 4% to R612 billion ($24.4 billion), and the bottom line came in 14% higher at R217 billion ($8.7 billion). That 35% net margin blows away even other emerging-market integrated giants like PetroChina (NYSE: PTR) and Petrobras (NYSE: PBR). While the net profit figure was juiced this quarter by the deconsolidation of a pension fund, Gazprom’s operating margin is still very impressive.
Given the firm’s strong state backing, I would be more comfortable owning Gazprom than lukewarm Lukoil. Still, even with its gazillion feet of gas in the ground, Gazprom has badly lagged the returns of the Chinese and Brazilian firms mentioned earlier. While I find Gazprom’s margins enviable, I don’t see shareholders being compensated adequately for the risk of holding this name. My feelings about this stock are perhaps best summarized by the Russian proverb, “One would like to eat fish but would not like to get into the water.”
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Fool contributor Toby Shute highly recommends the new Russian mobster film Eastern Promises, but he doesn’t have a position in any company mentioned. Petrobras is an Income Investor recommendation. The Motley Fool has a disclosure policy.
http://www.fool.com/investing/international/2007/10/09/gazprom-nothing-but-trouble.aspx
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Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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