Page 76 - bne IntelliNews Russia Country report May 2017

Acron's target is up to $200mn per year. Still, the implied payout (40% of IFRS net income) remains in line with the formal policy of above 30%.
The board of Russian oil company Bashneft has recommended that the annual general meeting withholds any dividends on common shares and declares dividends of RUB100 ($1.77) per preferred share , paying a total of RUB3bn in dividends for 2016, Interfax reported on May 25. Bashneft, in which Rosneft acquired a controlling stake last October, is reportedly postponing dividend payments for last year until the end of 2017. This is due to increased capex for recovery of the economic potential of refining facilities following an accident at the company's hydrocracking unit in the summer of 2016, as well as to enhance health safety and environment (HSE) at its refineries in 2017.
The private Russian oil company RussNeft will not pay dividends on ordinary shares freefloated in Moscow, the company said on May 29. The board of RussNeft recommends paying a total of about $40mn for 2016 for preferred shares only, held by structures affiliated with billionaire Mikhail Gutseriev. About 60% of the company is held by the Gutseriev family, 25% by Glencore oil trader, and 15% are in the free float. The company will revise the dividend policy and might increase the payout to at least 50% of net profit on preferred shares, Reuters reported on May 26, citing unnamed sources close to the company.
Russian pipeline monopoly Transneft will pay around RUB60bn (€0.94bn) in dividends for 2016, boosting the payout almost five-fold year-on-year, Interfax quoted Russia’s Minister of Energy Alexander Novak as saying on May 22. The preferred shares of Transneft in Moscow rose by over 2% on the announcement. The previous week was negative for the state-controlled company’s stock on news of the reduction of the weight of its preferred shares in the MSCI Russia Index . While 78.1% of Transneft’s ordinary shares are held by the state, 21.9% of preferred shares are in free float.
Federal Grid’s Board of Directors has recommended dividends per share of RUB 0.01427 for 2016 and RUB 0.0011 for 1Q17. The cumulative 1Q17 and FY16 DPS implies an attractive DY of 9%. The FY16 dividend is 7% higher y/y but 16% below our forecast (10% below for the total 1Q17 and FY16 DPS). In a press release, FSK said that the dividends were calculated as 50% from the adjusted RAS based net income.
Rosseti’s BoD has recommended 2016 DPS of RUB 0.0062 for ordinary shares and RUB 0.368 for prefs . Those numbers imply dividend yields of 0.8% and 17%, respectively. The numbers are broadly in line with our expectations.
Bashneft has recommended that shareholders approve dividend payments for preferred shares only , for a total amount of RUB3mn, or RUB0.1/share, according to Kommersant. The reason for this decision is that additional investments are needed to repair Bashneft’s refineries. Bashneft is also planning to consider a possible payment of dividends for both ordinary and preferred shares for 9mo17 at the end of 2017, taking into account the company’s retained earnings and financial results over the period. The company's annual shareholders meeting is to be held on 30 June, with registration closing on 5 June. The preliminary record date for dividends has been set as 12 July.
Shareholders of Russia's Mosenergo electric utility major approved RUB8.48/share dividends for 2016 at the annual meeting of May 31, upping the payout by 50%, Prime reports. A total of RUB3.36bn or 25% of Mosenergo's IFRS net profit of RUB13.4bn will be distributed to shareholders, reinforcing the company as one of the highest dividends payers in the Russian utilities segment. During the shareholders' meeting managing director Alexander Boutko said there would be no extra cash accumulated on
76 RUSSIA Country Report May 2017 www.intellinews.com