Page 87 - RusRPTMay20

8.3.2 ​ Dividends dynamics
● Oil & gas
Gazprom Neft’s BoD recommended FY19 dividends at RUB37.96/sh, 10.5% DY.​ The amount implies c45% payout from its 2019 net income (payout ratio amounted to 40% for 1H19 and 50% for 2H19). With Rb18.14/sh from H19 (4.2% yield at the ex-date on 17 October), the remaining dividend for the year amounted to Rb19.82/sh (6.3% DY). AGM will be held 11 June.
Rosneft’s Board of Directors has recommended 2H19 dividend per share (DPS) of RUB18.07. ​This corresponds to a payout of 50% of IFRS net income and brings the FY19 DPS to RUB33.41, including the already distributed 1H19 DPS of RUB15.34. The 2H19 DY stands at 5.4%. The DPS recommendation is fully in line with forecasts and the company’s dividend policy, which prescribes the company to pay 50% of its IFRS net profit.
● Banks
Bank St Petersburg (BSPB) announced that its Supervisory Board had recommended to the AGM the payment of no 2019 dividends for ords ​and to waive the potential share buyback. Still, the bank is to pay RUB0.11 per preferred share. We believe that the negative effect of COVID-19 on the economic environment might require an additional capital buffer, and so the cancelation of dividends for ords, as well as the potential buyback, would help the bank resist the pressure. BSPB’s exposure to transportation, construction and other troubled sectors is bearable, while retail portfolio is concentrated in the secured payroll client segment. However, we expect a notable increase in provision charges on the back of a weaker ruble and the deteriorating economic situation, while the slowdown of economic activity in March-April would add pressure on the bank's revenues.
● Retail
The board of Russia's second-largest retailer ​Magnit​ recommended paying a final dividend of RUB157 per share ​for 2019 that will be voted on at the annual general shareholder meeting on May 12. This makes a payment of RUB16bn, out of total dividends of RUB31bn ($0.4bn) for 2019
● Metal & Mining
Novolipetsk Metallurgical Kombinat​ (NLMK)’s AGM has rejected the board of directors proposal of 4Q19 dividends of RUB5.16/share according to Interfax. As a result, the board of directors now suggests paying RUB 3.12/share. The company says that the 4Q19 dividend has been reduced due to the deteriorating market conditions, in order to secure the company’s financial stability. NLMK said it would pay 100% of FCFE in future, and that if the market conditions improved, dividends for 3Q-4Q20 might be increased.
● Other
FSK’s Bod proposed 2019 DPS at RUB/0.0095​. The AGM is planned for 15 May, while the record date has yet to be approved, but historically falls mid-July. Analysis: Final DPS for 2019 at RUB0.0095 (5.25% DY) – 16% higher than BCSe. The company guided dividends for 2019 not lower than 2018. In total, the company may pay RUB23bn for 2019, including interim dividends.
Enel Russia's BoD called an AGM for June 19. The main question that should be important for investors at the moment is dividends. ​The BoD recommended paying R0.085 per share, for a yield of 9.6%, which is fully in
87​ RUSSIA Country Report​ May 2020 ​ ​www.intellinews.com