Page 87 - RusRPTJun19

Russian fertilizer producer Phosagro board recommended RUB72/share for 1Q19 which implies a dividend yield of 3.15%. The dividend payout of 65% of the first quarter net income is higher than the traditional 50% level. Total dividend payment is equivalent to RUB9.3bn. Dividend cut off date is 30 May.
Russian steel mill Mechel’s board of directors recommends RUB18.21/pref share for 2018. The proposed payment is fully in line with companies dividend policy. BoD recommended paying RUB18.21 per preferential share for 2018, which is exactly in line with company’s dividend policy of paying 20% from profit to shareholders. The company must coordinate dividend payments with creditor banks. The dividend cut-off date is 19 July. Current DY is 15.4%.
One of Russia's largest producers of thermal coal Fuel Company (KTK) will not pay dividends for 2018, accruing RUB6bn ($93mn) of net profit made last year, Kommersant reported on May 22. The company has recently been acquired by Mikhail Gutseriev and his associates, together now controlling 67% in KTK. Since 2018 Gutseriev's Safmar Group has been making headlines due to the mega-merger of its electronics retail assets, the consolidation of oil assets, and reported interest in children’s' goods retailer Detsky Mir. The shares of KTK dropped 10% on Moscow Exchange on the announcement, with the largest minority shareholder Prosperity Capital Management (25% stake) seen as the main loser. "The decision taken by the board is surprising for us, we now see that the company is undergoing changes," the head of investment at Prosperity Ivan Mazalov told Kommersant daily. Previously sources told the daily that Safmar will not seek a controlling stake in KTK and sees it as a portfolio investment. KTK operates retail coal distribution network in four regions of Western Siberia, as well as extraction and production assets that increased the output of thermal coal by 18% to 15.7mn tonnes, boosted net profit 2.8-fold to RUB6bn.
● TMT
Rostelecom BoD recommended final 2018 dividend tranche – Rb 2.5/sh both for common and preferred. Record date is set at 4 July. This puts total DPS for 2018 at Rb5 (at the minimum of the dividend policy) and aggregate payout at Rb13.9 bn.
● Other
On 25 April, TMK’s BoD recommended to its AGM that no dividends be paid 2018, Interfax reports. The AGM is to be held on 20 June, with registration closing on 26 May. Separately, Interfax reported that TMK might consider paying 1Q19 interim dividends. During the 4Q18 IFRS results conference call on 1 March, the company’s management guided for broadly flat y/y dividends. VTBC forecasted RUB2.22/share for 2018 (3.7% DY), while the consensus estimate was RUB2.00/share (3.4% DY). “Therefore, we view the news as negative for the name,” VTB Capital (VTBC) said in a note. “However, we note that 1Q19 interim dividends might at least partially compensate for the lack of a FY payment.” An interim dividend could be distributed more or less during the same period as FY dividends would have been (July or August), we believe, as they would have to be approved by an EGM rather than AGM. Although the company has demonstrated almost zero net income in 2018 ($2.5mn for FY18), the company’s FCF amounted to $221mn (up almost 3x y/y).
On Wednesday 29 May, RusHydro disclosed that its Board of Directors had recommended the dividend for FY18. At a DPS of RUB 0.0367, the total payment of RUB 15.9bn implies 50% of nominal IFRS net income. The record date was set for the eleventh day from the approval, which is due to occur during the AGM scheduled for 28 June.
Russian state grid holding Rosseti (Russian Grids) posted 23% year-on-
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