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company approved the dividends of RUB8.04 per share, confirmed record high export guidance, and said it might revise up annual production outlook. Gazprom has been posting record-high export numbers due to harsh weather conditions in Europe , but its reluctance to comply with the Finance Ministry's demand to pay 50% of IFRS net profit could make the government bite into the profits with higher extraction taxes . "The approved dividends of RUB8.04/share ($0.13/share) are in line with the recommendation from the company’s Board of Directors and imply a dividend yield of 5.7%, with an implied payout of 26.6% of IFRS net income," VTB Capital calculated on July 2. Should the company decides to keep the payout at some 25% of IFRS net income in 2018, VTB sees it delivering dividend per share (DPS) of RUB15.20 ($0.26), which implies the dividend yield growing to 10.7% next year. In January-June, Gazprom’s exports of gas to the EU and Turkey increased 5.7% y/y to 101.2bn cubic meters (bcm). In 2018 exports might reach a record 205bcm. At the same time the company could exceed its initial output plan of 474bcm in 2018 by 15bcm, and could revise its annual production outlook upwards. Gazprom also confirmed its outlook for a further increase in EU market share to above 34%. In 2018 VTB forecasts the output reaching a total of 485.7bcm, which is 2.5% (or 12bcm) above the company’s latest guidance. Were the company to increase its production outlook 15bcm, that would broadly bring the guidance up to the bank's estimates.
9.2.2 Automotive corporate news
Leading Russian carmaker Avtovaz has seen the export of its cars up by two thirds (64%) YTD to 16,592 units, the company said on June 10 – its best result in three years.
In June alone the company 3,508 cars were sold overseas, up by a third (34%) y/y. The company sells almost all its exports in other Commonwealth of Independent States (CIS) and memebersof the Eurasia Economic Union (EEU), with Kazakhstan and Belarus as rthe top export destinations, where 5,854 and 4,206 cars were sold respectively, according to a company press release.
The iconic Lada is the most popular model and holds a 22.4% market share in Kazakhstan as of June this, up from 17.8% in the same period a year ago. The Lada has a 18.4% market share, up from 9.4% over the same periods.
And Avtovaz is actively opening new markets. It entered the Cuban, Chilean and Tunisian markets this year. In all the company exports to a total of more than 30 countries, the company says.
The most popular export models are the Lada 4x4 and Lada Vesta models that accounting for about 30% of all exports.
In Russian Avtovaz sold ten times more Lada cars in the first half of this year than it than exported: a total of 169,884 units, up 21.1% y/y. The company estimates it holds 20% of the Russian car market, with exports accounted for 9% of all Lada sales.
Russia's largest carmaker AvtoVaz reported RUB3.1bn ($50mn) net IFRS profit for January-June 2018 versus net loss of RUB4.4bn for the same period of last year, the company said on July 26. The carmaker's revenues
73 RUSSIA Country Report August 2018 www.intellinews.com