Russian gas companies’ financial strategy considering sustainable growth

Abstract

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’ financial performance suggests another situation because of the insufficient level of financial indices that reflect the inconsistency of existing sustainable growth approaches. This situation indicates the relevance of the research concerning Russian gas companies’ financial 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’ financial growth strategy employing Geniberg Z — matrix as well as enhanced financial sustainability indicators system indices by identifying which indicators have a greater influence on sustainable growth rate. We found that return on fixed assets ratio, net profit growth ratio, debt equity ratio influence on Russian gas companies’ sustainable growth rate and recommended for the system of financial sustainability indicators (FSIS) usage. We associate the concept of Russian gas companies’ financial sustainable growth with environmental protection, energy savings, and social factors. Thus, we added to the financial model non-financial 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 financial strategy of Russian gas companies. © Steblyanskaya A., Wang Zh., Ryabova E. V., Razmanova S. V. Text. 2019.