Russian Gas Companies’ Financial Strategy Considering Sustainable Growth

doi 10.17059/2019-1-18
UDC 338.1

A. Steblyanskaya, Zh. Wang, E. V. Ryabova, S. V. Razmanova

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Over the past ten years, an ambiguous situation concerning Russian gas companies has been observed. On the one hand, companies’ reports represent conservative policies and sustainable growth in the coming years. On the other hand, companies’ fi nancial performance suggests another situation because of the insuffi cient level of fi nancial indices that refl ect the inconsistency of existing sustainable growth approaches. This situation indicates the relevance of the research concerning Russian gas companies’ fi nancial sustainable growth in the conditions of the global economy, “economic sanctions” and investment policy implementation. The primary purpose of the research is to analyse Russian gas companies’ fi nancial growth strategy employing Geniberg Z — matrix as well as enhanced fi nancial sustainability indicators system indices by identifying which indicators have a greater infl uence on sustainable growth rate. We found that return on fi xed assets ratio, net profi t growth ratio, debt equity ratio infl uence on Russian gas companies’ sustainable growth rate and recommended for the system of fi nancial sustainability indicators (FSIS) usage. We associate the concept of Russian gas companies’ fi nancial sustainable growth with environmental protection, energy savings, and social factors. Thus, we added to the fi nancial model non-fi nancial factors. As a result of the analysis, we have obtained the dependence of Sustainable Growth Rate to Environmental Ratings as well as Return on social responsibility costs. We recommend paying more attention to the energy, social, environmental, and economic determinants that could contribute to sustainable growth. We also found that Russian gas market companies could improve Financial Strategies according to sustainable growth point of view. We suggest ways to enhance the fi nancial strategy of Russian gas companies.

Keywords: Russian Gas Industry, Russian Gas Companies, Financial Strategy, Financial evaluation, Sustainability, System of Financial Sustainability Indicators (FSIS), Sustainable Growth Rate (SGR), Sustainable Growth Factors, Company’s Growth, Geniberg Z-matrix