Page 81 - RusRPTDec19

the proceeds of the sale to be invested in new projects rather than paid out via dividends.
Unipro’s Board has announced its recommendation for the interim dividend: DPS of RUB0.11 (implying a full payment of RUB7bn). ​The record date was set at 15 December. This implies a 4.2% dividend yield to the current share price. The recommendation came in in line with our expectations after management’s guidance for a full payment of RUB14bn in 2019. As per the same guidance, Unipro is due to pay RUB20bn annually in 2020-22, and the recent agreement with Rusal over the court claims (that eliminate all the risks of Berezovskaya GRES DPM being abolished), as well as the expectation that unit 3 at Berezovskaya GRES is to be commissioned in 1Q20, support this guidance. It also implies 30% EBITDA growth in 2020F. As such, the next dividend payment in May 2020 would rise, implying a 6% dividend yield (coupled with the December 2020 payment of 6%, bringing the FY20 annual total to a 12% total dividend yield).
Rosseti​ (Russian Grid) to adopt 75% payout of RAS NI from 2020 as part of new divi policy​. If annual RAS. DPS may rise 2.5-3x – DY 6% (vs current 2.3%) – if changes adopted. A crucial factor is the formula for dividend calculation means net income base is less volatile to potential adjustments and deductions. Note that the proposed changes have yet to be approved by Ministers and the company’s BoD.
On Wednesday 27 November, FSK released the recommendation of its Board of Directors regarding the 9mo19 interim dividend ​in the amount of RUB0.0088 per share. This implies a RUB11.3bn payment due in January 2020.
● Other
Acron’s BoD recommended dividends of Rb101 ($1.59) per share for 9M19,​ the company reported on OCtober 6. Total dividends paid would amount to RUBb4.1bn ($65mn). The record date is set for 11 December.
Mobile TeleSystems​ (MTS) also announced that, in light of the sale of its Ukrainian business in November for $700mn, its board of directors had recommended a special interim dividend ​based on the 9m19 results of R13.25 per ordinary share (RUB26.50 per ADR), which implies a 4.4% dividend yield. The record date is set for January 10. The final decision on the dividends will be made at an EGM on December 30. The payout of RUB13.25 per ordinary share translates into a total payment of RUB26.5bn, or approximately 55% of the proceeds from the sale of the Ukrainian business.
81​ RUSSIA Country Report​ December 2019 ​ ​www.intellinews.com