Page 96 - RusRPTNov20

8.3.2 ​ Dividends dynamics
Russia's Ministry of Finance will continue to maintain strict dividend discipline for State-Owned Enterprises (SOEs), keeping the 50% of IFRS net profit rule ​and switching to adjusted net profit as basis of the calculation, RBC business portal reported on October 1. RBC notes that the ministry stressed that even infrastructure majors such as Russian Railways and Russian Grids will have to comply with new rules. In 2021 the ministry expects to cash in RUB442bn ($5.7bn) in dividends, down by 31% on a lower 2020 profits calculation base due to the coronavirus (COVID-19) pandemic. The dividend revenues are expected to recover to RUB754bn in 2022 and to RUB913bn in 2023. BCS Global Markets commented on October 1 that the ministry's forecasts were slightly optimistic, but sees the "hard confirmation" of the 50% of IFRS net profit rule as positive.
● Oil & gas
Lukoil​’s Board of Directors approved 6mo20 DPS of RUB46. ​The dividend record date is 18 December. The EGM is to take place on 3 December (the EGM record date is 9 November). The dividend recommendation is fully in line with Lukoil’s dividend policy, which envisages a payout of 100% of adjusted FCF, and coincides with management’s guidance given during the 2Q20 call (see our Morning Comment of 31 August). The DPS of RUB46 translates into a non-annualised dividend yield of 1.1%.
TMK​ BoD recommends interim dividends of RUB3/share. Interfax reported​. The BoD of TMK PJSC recommended paying dividends RUB3/share for 6M20. The total payment may amount to cRUB3.1bn. The closing date of the register for receiving dividends was recommended for 7
96 ​RUSSIA Country Report​ November 2020 www.intellinews.com