Page 11 - FSUOGM Week 43 2022

FSUOGM INVESTMENT FSUOGM

Russia’s Rosneft oil major to

consider interim dividend

RUSSIA RUSSIA’S largest state-controlled oil major Ros- that its 1H22 IFRS results – for which only head-
neft will consider an interim dividend payment line numbers were released – formed a good
The shares of the for 9M22 at the November 11 board meeting, basis for dividend payments, BCS GM reminds,
company got a 4% according to Interfax. The shares of the company estimating that the 1H22 net income was suffi-
boost in Russia. got a 4% boost on the Moscow Exchange on the cient to pay a dividend of RUB20.4/share, or a
news. circa 6% dividend yield.
To remind, previously in July the sharehold- As followed by bne IntelliNews, Rosneft's
ers of Rosneft have approved the payment of a net profit climbed 13% in 1H22 to RUB432bn
record RUB441.5bn ($8.1bn) in dividends for ($7.2.bn), attributed to tighter cost controls.
2021. The result was achieved despite the impact of
For another interim payment this year, “the Western sanctions and other negative pressures
dividend size [is] of secondary importance to as a result of Moscow’s invasion of Ukraine,
[Rosneft’s] intention to pay,” BCS Global Mar- which have impeded some exports and com-
kets commented on October 26. plicated Russian oil companies’ ability to raise
The analysts believe that despite the reports financing.
suggesting that the dividends be paid on the “Rosneft was under an unprecedented pres-
results of the first nine months of 2022 “trans- sure of adverse external factors and unlawful
lated from bureaucratic language, this actually sanctions,” CEO Igor Sechin said in a statement.
means that dividends will be paid on 1H22, and “However, thanks to high operational efficiency
not 9M22 results”. and appropriate management decisions, we were
In September, Rosneft had announced its able to ensure business continuity and demon-
intention to continue dividend payments, noting strate stable results.” ™

Novatek not to publish 3Q22 results,

investors face information blackouts

RUSSIA RUSSIA’S second-largest natural gas company, understanding of the financial health of Russia’s
Novatek, will neither publish 3Q22 IFRS results publicly-traded oil & gas companies will diverge
Novatek's non- nor hold a conference call accompanying the from reality,” BCS GM analysts warn.
publication was publication of these results. While BCS GM notes that Novatek is tradi-
completely expected, As followed by bne IntelliNews, Novatek has tionally the first to publish accounting results
but still negative. been consolidating its market share as foreign after the end of each quarter, the reporting
energy majors are pulling out of Russia amid the transparency is seen as a problem for the entire
military invasion of Ukraine. Novatek bought a sector and “practically the entire Russian equity
49% stake in its Terneftegaz joint venture with market”. ™
TotalEnergies from its French partner and is
considering buying Shell's 27.5% stake in Sakha-
lin-2 liquefied natural gas (LNG) project.
While non-publication of the 3Q22 results is
“completely expected”, it is still a small negative
for all Oil & Gas stocks, as a lack of data risks that
economic performance is diverging from inves-
tors’ expectations, BCS Global Markets analysts
believe.
“The lack of timely and accurate accounting
data is slowly becoming a more acute problem
for equity and debt markets. As time passes,
the lack of accurate data on financial perfor-
mance increases the chance that investors’

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