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bne Invest
March 15, 2019 www.intellinews.com I Page 12
Russian independent gas producer Novatek will increase dividends in 2018
IntelliNews Pro
Russian independent gas producer Novatek will increase dividends in 2018 over the level of 2017, CFO and deputy CEO Mark Gyetvay told PRIME late on March 13.
The company said that the net profit attributable to shareholders rose 4.7% to RUB163.742bn ($2.5bn) in 2018 in February, according to its IFRS accounts.
“Dividends will be [discussed] next week. We
will approve them at a meeting of the board of directors...Of course, there will be an increase, as profit of the company grew. We pay at least 30% of our net profit [in dividends],” he said.
Gyetvay also said that Novatek plans to prolong its share buyback programme after it expires in June. “This is a $600mn [programme], and we renew
it every year. The probability of us prolonging the programme is very high,” he said.
In May 2018, the board of directors extended
the programme until June 7, 2019. Under the programme, the company will buy its shares and GDRs via its unit Novatek Equity (Cyprus) Limited.
According to the latest public data from Novatek, CEO Leonid Mikhelson controlled 24.75% in Novatek. Gas giant Gazprom owns 9.99% in the company, tycoon Gennady Timchenko’s companies Ena Invest and Volga Group own 19.16% and 4.3%, respectively, and France’s Total has a 19.4% stake.
Novatek has become an investors’ darling. As bne IntelliNews recently reported in an article “King of the castle” the share price of the heavyweight state-owned blue chip stocks have stagnated,
but those of the independent energy companies Novatek, and privately owned oil major Lukoil, have doubled in value in the last year.
Russia's Rusal ups profit by 40% in 2018 despite sanctions
IntelliNews Pro
One of world's largest aluminium producers Rus- sian Rusal reported 40% year-on-year increase in net profit to $1.7bn in 2018, with Ebitda inching up by 2%, and revenues up by 3% to $10.3bn.
The company has been under direct US sanctions since April 2018, but managed to compensate the 18%-19% dive in sales in the 2Q18 thanks to the higher prices (about 7.2% 9% higher in 2018).
bne IntelliNews this month analysed how eased US sanctions would affect Rusal's share price.
Following the publication of the 2018 results, Rusal "has resumed normal practice of commu- nication with investor community" and "normal trading with all long-term clients are in the re- establishment phase," BCS Global Markets com- mented on March 7.