Page 17 - FSUOGM Week 25

FSUOGM NEWS IN BRIEF FSUOGM

RUSSIA that will be made throughout the upstream The loan expires in 2025, it said.
segment. The analysts maintain a Hold Interfax also said Gazprom raised loans
Tatneft oil major reiterates recommendation on the company’s shares. worth EUR100.3mn from an international
bank in April-May.
dividend policy

Russian regional oil major Tatneft has held an Russian antimonopoly Lukoil says to pay RUB350
annual general shareholder meeting, at which watchdog to look into
the CEO, Nail Maganov, provided the output per share in final dividends
guidance amid the extension of the OPEC+ Gazprom pipe order
deal and commented on the dividend policy of for 2019
the company. Russia’s Federal Antimonopoly Service will
As reported by bne IntelliNews, Tatneft look into the latest tender of Gazprom gas giant The shareholders of Russian oil major Lukoil
has previously declared that it will not for large-diameter pipes, Tass reported citing have approved a decision to pay RUB350
pay dividends for 4Q19 due to the adverse the information of the watchdog. rubles per share, or a total of RUB242.5, in
market situation, which has prompted fears As reported by bne IntelliNews, this final dividends for 2019, the company said in a
that Russian oil and gas majors would cut month Gazprom placed a tender to acquire statement on June 23.
payments to shareholders. 1.28mn tonnes of large-diameter pipes Taking into account the interim dividend
But Maganov pledged to stick to Tatneft’s (LDP) for RUB98bn ($1.43bn). The deal payment in 2019, the total payout for
dividend policy, Tatneft is maintaining its was seen as supporting the pipe producers, 2019 stands atRUB542 per share or almost
dividend policy, which requires a payout of as VTB Capital (VTBC) estimated that it RUB380bn in total.
at least 50% of RAS or IFRS net income (the might account for almost a third of total For 2018, the company paid total
higher of the two). LDP consumption in Russia in 2020-21. dividends of RUB250 per share.
“The most important message yesterday However, now FAS is reportedly looking
was that the company will stick to its into the deal, although it is not clear
dividend policy, which supports our whether the contract has already been Eriell Group sets records
positive view on payments in 2H20,” awarded. The pipes are planned to be used
Sberbank CIB commented on June 18. in the construction of loopings for the for well construction on
The board of directors (BoD) will pipeline to China, Power of Siberia, as well
recommend dividends if the company as the Bovanenkovo-Ukhta and Ukhta- three of its most complex
generates sufficient FCF (free cash flow) Torzhok pipelines..
beyond 50% of net income. Tatneft also projects
plans to continue paying interim dividends,
after having distributed all of its FCF in INK expands pipeline to Eriell, an international oilfield services group,
interim dividends last year. reports on several records achieved in May at
Tatneft maintained positive cash flow ESPO system three of the company’s most complex projects.
of $0.74bn in 1Q20, adjusted for working In the month, the company set three well
capital release at $0.4bn, supported by a Eastern Siberian producer Irkutsk Oil construction records, demonstrating Eriell
32% quarter-on-quarter decline in capital Company (INK) has finished expanding an oil continues to provide high-quality services
investment to $0.37bn. pipeline between the Yaraktinskoye field and to its customers despite the difficult mining
Based on the current oil prices, Sberbank the East Siberia – Pacific Ocean (ESPO) system. and geological conditions of the projects.
expects a dividend per share for 1H20 and The project, launched last year, aims to On June 14, Eriell celebrated its 16th
2H20 combined (for dividends to be paid raise the volume of oil that INK can pump anniversary. During this period, over 9.5mn
in 2H20-1Q21) of $0.9/share, implying a to ESPO to 9.5mn tonnes per year (190,000 metres of rock were drilled, and over 2,800
dividend yield of about 10.5%. barrels per day). wells built, for more than 45 customers in
At the same time, Tatneft expects its INK began using the ESPO system in the most challenging climatic and geological
average crude output in 2020 to be 70,500 2011. The system carries Eastern Siberian conditions.
tonnes daily, which would imply total oil to China and Pacific Ocean ports, where Vitaliy Borisovich Dokunikhin, First
output of 25.8mn tonnes this year, making it can be loaded onto tankers for export to Deputy Chairman of the Management
a 13% year-on-year decline and close to other Asian markets.. Board of Eriell Group, General Director
previous estimates by Sberbank CIB. of Eriell Neftegazservice said: “We are
Sberbank CIB sees the refining guidance constantly working on finding new
implying 7% y/y growth to 11.5mn Russia’s Gazprom raises solutions and optimizing processes. Thanks
tonnes as overly optimistic given the to this and, of course, excellent teamwork,
current market conditions. To remind, EUR500mn loan from we are able to constantly improve our
previously the analysts had a cautious view efficiency and achieve victories on our most
on the name despite its ambitious 2030 international bank complex projects.”
downstream strategy. At the Vostochno-Messoyakhskoye
“No surprises,” BCS Global Markets Russia’s Gazprom Group has raised a long- oil and gas condensate field (customer
commented on June 19 on the CEO’s pledge term loan worth EUR500mn ($559.30mn) Messoyakhaneftegaz):
to maintain a focus on dividends, the from an international bank, Interfax news • A record construction time for a well
unchanged medium-term strategy towards agency reports on June 19, citing the company’s using fishbone technology was set
downstream and the 20% cut to investments documents. • The well was drilled in four runs; the

Week 25 24•June•2020 www. NEWSBASE .com P17