Page 92 - RusRPTNov19

Russia top 20 dividend payers next 12 months
Company NTM FY18 FY19 FY20
Surgutneftegas, pref. 18.70% 3.40% 18.70% 7.90%
Globaltrans, GDR 16.90% 16.40% 16.80% 16.90%
HMS, GDR 14.30% 18.10% 13.60% 13.90%
Severstal, ord. 13.40% 14.90% 13.10% 11.50%
VEON, ADS 13.00% 12.50% 13.00% 13.40%
Evraz, ord. 12.20% 13.30% 14.10% 11.30%
Norilsk Nickel, ord. 12.20% 10.00% 12.20% 12.20%
Enel Russia, ord. 12.10% 12.40% 12.10% 12.70%
Tatneft, pref. 11.80% 7.10% 9.20% 8.40%
MMK, ord. 11.10% 11.70% 11.10% 12.90%
LSR Group, GDR 10.90% 11.40% 10.90% 10.90%
Detsky Mir, ord 10.90% 9.70% 10.90% 13.00%
MTS, ADR 10.70% 10.10% 10.70% 10.70%
MTS, ord. 10.70% 9.90% 10.70% 10.70%
NLMK, ord. 10.40% 11.20% 12.60% 9.30%
Etalon Group, GDR 10.10% 9.60% 10.10% 9.60%
Inter RAO, ord. 9.90% 3.20% 4.20% 9.90%
Alrosa, ord. 9.90% 12.50% 9.90% 12.50%
Moscow Exchange, ord. 9.30% 6.40% 8.90% 9.30%
Tatneft, ord. 9.20% 5.60% 7.20% 6.60% Source: Bloomberg, Company data, VTB Research Cap
8.3.3 ECM news
Lukoil announced a new share buyback program of $3bn on October 3
(equivalent to circa 5% of share capital as of the September 30 close) that started yesterday and will last until December 30, 2022. The announcement is in line with analysts expectations and should be taken positively by the market, in our view. Analysts expect it to be carried out at a pace similar to that of the first program, at circa $100mn per week. Lukoil remains one of the top picks in the sector given its strong FCF generation and much improved payout policy. It has distributed $10bn to shareholders since the beginning of 2018 for a total annual yield of 10%. Based on the current policy of distributing 50% of FCF after dividends via share buybacks, we anticipate a normalized total annual
92 RUSSIA Country Report November 2019 www.intellinews.o