Page 79 - RusRPTMay19

The Supervisory Board of Credit Bank of Moscow (CBOM) recommended to distribute 24.6% of the Bank's RAS net income for 2018 as its first ever dividends payment to the shareholders. The total amount of dividend recommended to be paid will reach RUB2,978,768,085.26 or RUB0.11 per one ordinary registered share of the Bank. The decision to pay dividends will be taken by the Bank's annual General Shareholders' Meeting to be held on 27 May 2019.
● Metal and Mining
Alrosa’s board of directors recommended 4.11/share as a dividend for 2H18, which is 100% of free cash flow (FCF) and a month to month dividend yield of 4.3%. Consequently, Alrosa intends to pay RUB30.3bn of dividends for 2H18. Considering the RUB5.93/share paid for 1H18, total dividends for 2018 reached an all-time high of annual dividends of RUB73.9bn. 2H18 DY is 4.3%, FY18 is 10.5%. The 100% of FCF will be paid earlier than expected for 2H18 instead of expectations of 1H19. Going forward, Alrosa’s M2M DY is one of the most attractive in M&M at 14%.
Highland Gold’s 2019 dividends to decline, but be above peers. The company announced $23mn of final dividends for 2018, which strongly exceeds our estimates. That means $69mn for 2018, an 11% yield, 102% of FCFE. In 2019F, it might decline to 2.8%, in order to avoid leverage build-up. That would still be more attractive than the global gold average (1%).
Norilsk Nickel board recommended RUB762.52/share ($1.22/ADR) dividends for 2H18, the company reported. Record date for dividends is set for 21 June. That implies 2H18 dividends yield of 5.4% and payout ratio is 60% of 2H18 EBITDA, which was fully in line with expectations. Going forward, BCS GM sees a risk that Norilsk’s dividends may decline due to consistently rising leverage, for, which company’s dividend policy is designed.
Russian pipemaker TMK board of directors recommended paying no dividends for 2018, but might consider 1Q19 interim dividends. 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. The consensus estimate was RUB2.00/share (3.4% DY). 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). 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).
The board of directors of Russian integrated steel producer Magnitogorsk Iron and Steel Works (MMK) has recommended paying 1.488 rubles per share in dividends for January–March, in line with the managers’ proposals, the company said in a statement on Tuesday. The total sum will amount to $260mn, or 100% of the company’s free cash flow. June 20 is recommended as a record date.
● TMT
The board of directors of major Russian mobile operator MTS has recommended shareholders approve dividends for 2018 at RUB19.98 per share, or RUB39.96 per American depositary receipt (ADR), totaling RUB39.927bn, the company said late Wednesday in a statement. The board recommended that the annual general meeting (AGM) of shareholders set the record date for shareholders and ADR-holders entitled to receive dividends for the 2018 fiscal year for July 9. The AGM will be held on June 27, and the register will close on May 24. For 2017, MTS paid 23.4 per common share, or
79 RUSSIA Country Report May 2019 www.intellinews.com