Page 23 - bne_newspaper_August_17_2018

Eastern Europe
August 17, 2018 www.intellinews.com I Page 23
blend typically trades at about a dollar less than Brent).
Surgut dividends this year for the prefs might reach as high as 18.6% says Sberbank – the high- est in the industry.
“The growth [in dividend yields] partly comes from the company's operating performance and general macro trends (the operational busi- ness generates some RUB3.20 in DPS or 47% of total DPS), which still implies a healthy c.8.6% DY, on our numbers. Another RUB 0.80/share
in DPS (12% of total DPS or 2.2% DY) is gener- ated by the interest income earned at Surgut- neftegas' sizable cash pile, which reached RUB
2,548bn ($40.6bn) in 1H18. The remaining RUB 2.90/share (42% of total DPS or some 7.8% DY) is attributed to the FX gain reflected due ruble depreciation. We note, though, that RUB volatil- ity might imply a different $dividend yield to our dollar-denominated 12-month Target Price,” Sberbank explained.
The stock has already performed well recently along with other commodity companies on the back of rising oil and metal prices, gaining 10.3% in dollar terms since the end of June and outper- forming the RTS oil and gas index that makes up 60% of the markets capitalisation by 18.1%. “But we believe there is some room for upside left,” Sberbank said in a note.
SIGN UP FOR
A FREE DIGITAL SUBSCRIPTION TO BNE’S MAGAZINE
Sign up to bne IntelliNews’ monthly e-magazine for free, delivered to your inbox each month.
We cover business, economics, finance and politics of the 30 countries of emerging Europe and central Asia.
While other news outlets report on what is happening, we look at why with our in-depth analysis.
To get the e-version of our monthly magazine fill out the form here.
Or go to bne.eu/welcome to see samples of this and other products.