Page 115 - RusRPTApr21

8.3.2 Dividends dynamics
The amount of state-controlled companies that pay at least 50% of their net profit in dividends should rise until 2024, Finance Minister Anton Siluanov said on Friday at a meeting of the Federal State Property Management Agency. “We think that the dividend policies are one of the factors of operating efficiency of a company, where the state owns a stake. We plan to raise the amount of companies that pay 50% of their profits until 2024,” he said. In 2020, budget revenue from dividends of state-controlled companies outperformed expectations and reached 421bn rubles, Siluanov added.
● Oil & gas
Lukoil held its FY20 results call 10 March. The company confirmed the 2H20 dividend of RUB 213/share, meaning the FY20 dividend will be RUB 259/share. Hydrocarbon production is guided to increase 2% YoY (excluding West Qurna-2). CEO Vagit Alekperov also presented the company’s demand outlook under different energy scenarios based on global temperature increases.
Novatek’s Board of Directors has recommended final DPS for 2020 of RUB 23.74 (on top of the RUB 11.82 interim dividend, so the overall 2020 dividend is thus RUB 35.56/share). The AGM is scheduled for 23 April, and the AGM record date is 31 March. The dividend record date is 7 May. The board’s recommendation comes above the RUB 16.01/share that we had expected based on a payout of 50% of normalised net income for FY20 (the dividend policy threshold) (see our Novatek – 4Q20 IFRS; higher DPS, but still moderate DY). The recommended dividend implies a 64% payout of normalised net income. Although the development is positive in general, given the rather modest DY of 1.7%, we do not expect any tangible market reaction.
● Real Estate
LSR’s Board of Directors recommended dividends for 2H20. The BoD recommended Rb39/sh DPS for 2H20, following the Rb20/sh paid in 1H20, as the company moved to interim payments last year. FY20 DPS of Rb59/sh is almost double 2019 DPS of Rb30/sh, but is below LSR’s historical high of Rb78/sh, given plans to expand the land bank this year. Dividend record date is set for 11 May.
● Metal & Mining
Interros proposes change to Norilsk Nickel’s dividend policy. Reuters reported. Interros proposed lowering payouts to help fund planned investment. Nornickel’s dividend policy is set under an agreement between Interros, controlled by Vladimir Potanin, and aluminium producer Rusal. The current approach, meaning a payout of 60% of its core earnings expires on 1 January 2023, but Interros wants to change it before then, allowing Norilsk Nickel to minimize its final 2020 dividend payout. The Head of Interros, Batekhin, said he had initiated a discussion of his proposals ahead of Nornickel's BoD meeting set for 29 March. Maxim Poletaev, Deputy head of UC Rusal, said in turn that UC Rusal does not refuse to talk about Norilsk Nickel’s dividends, but it wants to see more arguments from the partner, adding that the company does not say that it blocks this suggestion or that it does not agree with it – UC Rusal is ready to discuss on Monday (29 March). Norilsk Nickel has already
115 RUSSIA Country Report April 2021 www.intellinews.com