Page 14 - FSUOGM Week 17 2021

FSUOGM NEWS IN BRIEF FSUOGM

Deputy CEO: Gazprom can showed that clearly. The depleted deposits
RUSSIA differently for different fields. Stocktaking
Russian oil major Lukoil build LNG plant at Amur gas asked for transition to the added income,
this is one of the results of stocktaking," the
could propose non-cash refinery official said.
But Tatneft Deputy CEO Azat Yagafarov
dividends Russian gas giant Gazprom is considering said that the added income tax showed low
efficiency on company assets. "We can apply
construction of a liquefied natural gas
Russia's second-largest oil company (LNG) production facility at the Amur gas the added income tax on brownfields… but
independent Lukoil recommended a final refinery, Deputy CEO Vitaly Markelov said it shows low efficiency, extremely low for
dividend per share of RUB213 for 2020, on April 26. our company," the official said.
making 3.6% yield and in line with previous “We are now discussing construction Aide to Gazprom Neft CEO Pavel
management's dividend guidance. The total of an LNG plant near our Amur gas Karchevsky said that the company expects
2020 dividends are RUB259 per share with refinery. The LNG can be used for various to balance the negative effect of the tax
a 4.4% yield. purposes including development of the gas change on the Novoportovskoye field in
At the same time, the board of Lukoil infrastructure, the needs of the Vostochny three years..
will propose amending the company's space launching site, and development of
charter to allow it to pay dividends in cash gas motor fuel,” he said.
as well as securities. The launch of two debut production lines
"The cash dividends would continue at the 950 billion ruble Amur gas refinery EASTERN EUROPE
to be calculated based on the approved is scheduled for April–June 2021 and of the
dividend policy, while any payments in third line for December 2021. All the six Lukashenko says discusses
securities would be distributed on an ad lines planned now will be commissioned by
hoc basis on top of the cash dividends," December 2024, and the plant’s production oil, gas prices with Putin
Sberbank CIB commented on April 22. capacity will amount to 38 billion cubic
Based on the company's description, meters of methane, 2 million tonnes of Belarusian President Alexander Lukashenko
the option of non-cash, ad hoc dividends ethane, 1.7 million tonnes of liquefied discussed the hydrocarbon prices and
represents a type of asset spin-off in the petroleum gas, and 60 million cubic meters cooperation at a meeting with his Russian
form of shares, Sberbank CIB believes, of helium. counterpart Vladimir Putin, he told
seeing such option as neutral for the shares. newswire Belta on April 24.
Sova Capital also sees the idea as neutral "This time we have addressed the
for now, while reiterating a Buy call on Added income tax shows urgent issues with Vladimir Putin --
Lukoil's shares. "The company will continue the hydrocarbon, oil, gas, prices and
to pay out 100% of free cash flow [FCF] efficiency on brownfields cooperation," Lukashenko said.
in dividends (adjusted for interest and The negotiations took place on April
leases), and we see the company’s dividends Stocktaking showed that the mineral 22 and lasted for four hours, Russian
yielding 10% in 2021 and 11% in 2022- extraction tax (MET) for the depleted president's spokesman Dmitry Peskov said
2023," Sova analysts estimated. deposits worked unevenly and the deposits earlier.
Lukoil reported revenues of $20bn in should be transferred to the added income
4Q20 under IFRS, and Ebitda of $2.5bn, tax, Deputy Finance Minister Alexei
in line with expectations. However, the Sazanov said at a forum on April 27.
company's net profit of $0.4bn missed "The mechanism of the MET for CENTRAL ASIA & SOUTH
consensus expectations by 54%.. brownfields was formulated inefficiently
because the support measures worked CAUCASUS

P14 www. NEWSBASE .com Week 17 28•April•2021