Page 111 - RusRPTMay21

note, only yesterday company management stated that the loss of tax breaks for HVO late last year would likely mean a reduction in investments by Rb225bn ($3bn) from 2021-2030 and a reduction in planned oil production vs. an ambitious growth plan of 98mt (715mn bbl), all of which would in turn reduce tax payments by about Rb1 trillion ($13bn).
Lukoil confirmed its dividend recommendation for 2020 at RUB259/sh (includes the interim, 4.4% dividend yield). The company also presented an amendment to its Charter for shareholders to vote on. The amendment would allow Lukoil to distribute dividends in the form of securities. The change would not affect cash dividends, to which the current dividend policy would still apply. Rather, it would make it possible to distribute the shares of Lukoil’s power generating segment to the company’s shareholders. We treat the news as neutral and reiterate our Buy recommendation. We see the company’s valuation as undemanding and note a 12.3% dividend yield for 2021F.
HMS ’s Board of Directors has recommended paying a 2020 dividend of RUB 4.25 per ordinary share, which implies a yield of 5.9%. It also decided to list the company's GDRs on the Moscow Stock Exchange. Finally, it recommended extending the buyback programme, which covers up to 6% of the company's shares, by one year. In our model, we did not expect the company to pay a 2020 dividend, while the listing in Moscow might help it to expand the investor base and improve liquidity, we think. Overall, we see the developments as positive. Our unchanged 12-month Target Price of USD 4.50 implies an ETR of 5%. Hold reiterated. The record date for the dividend distribution is set for 18 June 2021, while the payment date is tentatively set for 1 July 2021. The decision to distribute dividends comes as a positive surprise to us, as 2020 was quite challenging for the company and we did not expect any distributions. We think that the decision might indicate an improving outlook for this year on the back of the recently signed contracts.
● Retail
M.Video-Eldorado Group, the Company Russia's leading e-commerce and consumer electronics retailer and part of the SAFMAR Group owned by Mikhail Gutseriev, announces that the Company’s Board of Directors has recommended that the Annual General Meeting of Shareholders approve a dividend payment of RUB6.8bn, or RUB38 per ordinary share of PJSC M.video.The total dividends to be paid out as recommended by M.Video-Eldorado Group's Board of Directors may amount to about RUB 6,831 million, or RUB 38 per ordinary share. The Annual General Meeting of Shareholders will take place on May 7, 2021. The Board of Directors has recommended May 18, 2021 as the record date for dividends. Based on the Company’s 1H 2020 performance, M.Video-Eldorado Group paid out dividends in the amount of RUB 5.4 billion, or RUB 30 per ordinary share of PJSC M.video. Thus, the total of the dividends to be paid out for FY 2020 may reach RUB 12.2 billion (RUB 68 per ordinary share), which corresponds to 100% of the Company’s 2020 adjusted net profit under IFRS 17.
The Magnit board of directors has recommended a final dividend for 2020 of RUB25bn (RUB245.31/share) with a record date of June 25, the company said on April 26. The recommended amount implies a 4.7% dividend yield, according to VTB Capital’s calculations and the total dividend distribution
111 RUSSIA Country Report May 2021 www.intellinews.com