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year increase in net profit in 1Q19 to RUB40.8bn ($0.6bn), with Ebitda gaining 21% y/y at revenue growth of 2% y/y. "Solid results based on operating performance resulted in 23% y/y growth in net income," BCS Global Markets commented on May 27. Notably, the management of Rosseti suggested the board of directors consider dividends for 1Q19, with the approach of dividends calculation not yet determined. The company pays at least 50% of net profit in dividends, but is subtracting non-cash revenue streams, investment, and transfers to subsidiaries from the revenue base. In 2017 Rosseti did not pay any dividends and planned to pay RUB5bn for 2018 out of RUB124.7bn profit under IFRS. Rosseti controls 80% in the Federal Grid Company, which remains one of the best dividend payers in the Russian utilities space in despite a slight decline in revenues in 1Q19.
FSK’s BoD recommended Rb0.016/sh for 2018 dividends, suggesting 36% payout from RAS net income. DPS implies a solid 9% DY. Record date is yet to be decided, but is usually mid-July.
Enel Russia's Board of Directors made a recommendation to pay DPS of RUB 0.1414, which translates into a payout of 65% of 2018 IFRS net income. This implies a dividend yield of 13.0%, the largest dividend yield in the Russian utilities space.
88 RUSSIA Country Report June 2019 www.intellinews.com