Page 87 - RusRPTJun20

8.3.2 ​ Dividends dynamics
● Oil & gas
The​ ​Gazprom​ BoD has recommended a RUB15.2 per share dividend for 2019​, the company disclosed in a statement. The record date is set for July 16. This decision was fully expected, as the Management Board had already approved this amount (a 30% payout based on reported net income for 2019). The implied yield is 8% based on the current market price. Still, the fact that the company is sticking to its approved dividend policy is positive and should be supportive for the stock.
Transneft’s management has proposed to the BoD paying RUB81bn, or RUB11,200/share, in dividends ​for 2019, which is 50% of IFRS adjusted net income. The company also plans to stick to its official dividend policy (50% of IFRS adjusted net income) in future. The company is currently in discussion with the government about splitting the 2019 dividend payment into four parts (at least 50% of the proposed dividend to be paid during this year, with the remaining 50% distributed over the next three years as an additional payment to the dividends for those years). There has been no decision from the government so far concerning the company’s proposal.
Russian oil pipeline monopoly​ ​Transneft​ may pay 50–75% of its net profit in dividends if the government raises the company’s oil pumping tariff to the market level, ​Transneft said in a presentation on Monday. “Taking into account the structure of shareholders in the oil sector, it is reasonable not to reduce, but to raise Transneft tariffs to the market level to eliminate the artificial imbalance that emerged in the sector. Given the increase, Transneft could raise payments to the state and allocate 50–75% of the net profit on dividends,” the company said. Reduction of tariffs will lead to losses of the state. Transneft pays RUB40–79 of each RUB100 of net profit to the government, while the oil companies pay only RUB14 per RUB100 of net profit to the state in dividends, while RUB42 go to private shareholders.
Lukoil​’s Board of Directors has recommended a final dividend of RUB350/share for 2019, ​according to a company press release. Our View:
87​ RUSSIA Country Report​ June 2020 ​ ​www.intellinews.com