Page 85 - RUSRptApr17

With the BoD meetings season starting in April, not much time is left for the authorities to work out a unified dividend decision and the consensus is that the powerful captains of state industry will probably get away with not paying the full whack once again. However, analysts are assuming that these companies will have to concede paying at least 25%.
“Since the new directive has not yet been issued, starting from 1 January 2017, SOEs are again required to pay not less than 25% of net income (as set out in the current regulations). Still, MinFin is maintaining its push for a 50% dividend payout. The most recent update on the SOE dividend theme came from the government meeting held by First Deputy Prime Minister Igor Shuvalov on 29 March, at which he suggested the ministries continue working on the matter, and further comments from MinFin on its intention to fix an IFRS payout base and 50% payout guideline separately in legislation,” Zabotkin said.
SOE dividend payouts
IFRS
RAS
2010
2011
2012
2013
2014
2015
2010
2011
2012
2013
2014
2015
Gazprom
9%
16%
12%
15%
107%
24%
25%
24%
25%
27%
90%
46%
Rosneft*
10%
25%
25%
25%
25%
35%
15%
34%
29%
99%
17%
52%
Gazprom Neft*
22%
22%
25%
25%
25%
28%
39%
45%
52%
66%
217%
190%
FSK*
14%
no divs
no divs
no divs
neg NI
38%
5%
no divs
no divs
no divs
25%
95%
MOESK*
7%
7%
23%
15%
26%
50%
8%
7%
25%
25%
25%
68%
RusHydro
27%
8%
neg NI
27%
24%
48%
7%
8%
25%
15%
20%
50%
Russian Grids
0.50%
0.60%
0.40%
no divs
no divs
no divs
0.20%
neg NI
neg NI
no divs,
no divs
no divs
Transneft
1%
1%
3%
5%
5%
9%
25%
25%
46%
70%
25%
100%
Alrosa
16%
28%
24%
35%
neg NI
50%
24%
25%
21%
31%
46%
73%
Aeroflot
14%
13%
19%
35%
no divs
no divs
10%
19%
43%
25%
no divs
no divs
Rostelecom
38%
32%
23%
37%
25%
118%
79%
46%
25%
25%
32%
76%
Sberbank
11%
15%
17%
20%
3.50%
20%
12%
16%
19%
19%
3.20%
20.40%
VTB
10%
10%
17%
15%
439%
309%
14%
38%
83%
44%
91%
67%
Source: VTBC
8.3.2 Dividends dynamics
The Russian government has approved a directive allowing state-controlled oil major Rosneft to pay 35% of net IFRS profit for 2016 rather than the 50% required of state companies, Reuters reported on April 25, citing unnamed sources in the government. Rosneft, which claims an exception to the rule due to its multi-level ownership structure and sizeable investment programme, previously defied the government on dividends and other directives for state-controlled companies, citing separate arrangements with the Kremlin. The 35% of IFRS net profit for 2016 would translate into RUB6 per share or a dividend yield about 2%, Gazprombank estimated on April 25.
85 RUSSIA Country Report April 2017 www.intellinews.com