Page 75 - bne IntelliNews Russia Country report May 2017

the company's undistributed net income as of 31 Dec 2016. The dividends yield less than 1%, which bankers believe reflects the challenging situation in the DAP market. According to the Phosagro dividend policy, the company is to pay out dividends of 30-50% of IFRS net income on a quarterly basis.
Aeroflot board recommends 50% of income, 9% DY, RUB17.5 PER share . In total the company will pay RUB19.4bn, which is 50% of net income under IFRS. The record date is 14 July, and dividends will be paid by 18 Aug. This is completely in line with market expectations, and assumes a 9% dividend yield.
Rushydro announces FY16 dividend, 50% IFRS income . RusHydro's board of directors has declared a dividend of RUB0.04662/share. The number is completely in line with the street's expectations, and suggests a 50% IFRS net income payout, and a 5.6% dividend yield.
Lenenergo announces FY16 dividends . The company's board recommends paying out RUB0.1331/share dividend for the ordinary shares, and RUB8.107/share for the pref shares for 2016. The dividend payout is reportedly linked to 2016 RAS net income (RUB7.6bn). Lenenergo did not pay any dividends last year after posting a net loss. The pref share dividend was expected as Lenenergo must distribute 10% of its net income for pref shares under its charter. The latter remains healthy and offers a 14% dividend yield. The ordinary dividend payout will total 15% of RAS bottom line, with Lenenergo effectively spending 25% of its RAS net income on dividends for 2016. This is well below the 37-39% IFRS payout ratios announced by MRSK Center, and MRSK Center and Volga last week (or 45-51% of IFRS net income adjusted for technological connection income). Federal Grid Company is the biggest dividend enigma within the Rosseti empire.
Etalon dividend payout to increase to 40-70%. Dividend payout was raised to 40-70% from 30-50%. Etalon’s BoD approved an increase in the company’s target dividend payout range from the current level of 30-50% to 40-70% of consolidated IFRS net income. Investment case strengthened further. The payout increase is positively a result of the company’s prudent financial policy, which aims at maximizing ROIC while maintaining a healthy liquidity position. Given Etalon’s rather conservative property delivery targets (Etalon plans to deliver 410-420K sqm of NSA in FY17 – i.e., essentially the same volume as in FY16) and ambitious sales target (property sales are expected to increase by 20% in value terms), the company is very well-positioned to raise dividend payouts without sacrificing liquidity. FY17E DY in 4.8-8.4% range. According to our estimates, a 40-70% payout would imply an aggregate DPS of Rb10.5-18.3 over the next 12M, yielding 4.8-8.4% based on our FY17E financial forecasts.
MOESK BoD recommends a low 25% RAS payout with DY of 3.3%. The low dividend payout (25% of RAS or 16% of IFRS profits) implies a 2016 DY of 3.3%, which may put pressure on the stock. MOESK’s BoD recommended paying Rb1.52bn or a DPS of Rb0.031205/s as dividends for 2016, according to Interfax. This represents 25% of RAS net income or 16% of IFRS net income, implying a 2016 DY of 3.3%.
Aeroflot is to pay RUB17.4795 /share as 2016 dividend (50% of IFRS net income ), complying with the signed government decree. The company’s board did not support minorities’ proposal to pay 75% of IFRS NI.
Acron BoD recommends DPS of RUB 95 for 2H16, 6% annualised DY , slightly below our expectations. Acron's Board of Directors has recommended that the company distribute dividends per share of RUB 95 ($1.69 at the current FX) for 2H16; the stock goes ex-dividend on 10 July. The annualised dividend yield stands at 6%, below our expectations of over 8%. After a payout of nearly $100mn for 1H16, the payout for 2H16 stands at $68mn, while
75 RUSSIA Country Report May 2017 www.intellinews.com