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2018-1Q19 (for an 8.3% yield), and that Tatneft already distributed more than the entire amount of its FCF expected for this year ($2.4bn) in payments in 3Q-4Q19 (a total of $2.6bn, for a 9.4% yield). The company aims to reach $3bn in dividend distribution annually (for an 11% yield) in the medium term. As the same time, BCS Global Markets on November 14 warned that the 100% payout ratio could actually exceed the FCF and “appears unsustainable in the mid-term.”
● Banks
● Retail
M.video's Board of Directors has recommended a RUB33.37 per share dividend for 9mo19, with a record date on 16 December. The announcement linked the recommendation to the completion of the process of integrating M.video and Eldorado. The last dividend payment was in 2015. The company’s investment case has undergone notable changes since then, with the arrival of a new controlling shareholder and a sizable acquisition. According to the last strategy update, management anticipates revenues growing from RUB353bn in 2018, to more than RUB500bn by 2022, and EBITDA advancing from RUB21bn to over RUB35bn, implying CAGRs of 9% and 14%, respectively. The company also guides for an EBITDA margin of more than 6%. Management estimates leverage to fall from RUB33bn and net debt/EBITDA of 1.6x as of YE18 to 0.4x by 2022. The dividend recommendation arrives one year ahead the guidance.
Children's retailer D etsky Mir announced November 6 that its BoD had recommended a dividend for 9m19. The company is going to distribute 100% of net income under RAS for the period (R3.74bn), which implies R5.06 per share and a 5.2% dividend yield, in line with our forecast. The record date is set for December 17.
Magnit announced November 18 that its BoD had recommended a dividend for 9m19. The payment will be R15.0 bln in total, or R147.2 per share (R29.44 per GDR), which implies a 3.8% yield. The record date was set for January 10.
● Real Estate
● Metal & Mining
Norilsk Nickel’s BoD recommended RUB604.09 DPS ($0.95/ADR) for 9M19, the company reported. The EGM is scheduled for 16 December, while the record date for dividends will be 27 December. This will be the company’s first 9M dividends since 2015.Final dividends may be reduced now, as the company has never paid more than 60% of EBITDA (maximum under current shareholder agreement and dividend policy).
● Utilities
Russia’s biggest foreign-owned utilities company Enel Russia will not propose a special dividend on the sale of Reftinskaya thermal power plant (TPP), the CFO of Enel Alberto de Paoli said on November 27. As reported by bne IntelliNews, in October Enel Russia has finally sold its biggest coal-burning power station Reftinskaya for an undisclosed amount as part of its efforts to “go green”, dramatically change its generation asset profile, as well as to become more profitable. According to De Paoli, Enel would prefer to use
80 RUSSIA Country Report December 2019 www.intellinews.com
