Rosneft will pay its shareholders over RUB 406 billion in dividends in 2022

On Friday, June 30, the annual meeting of shareholders of PJSC NK Rosneft was held following the results of 2022. The shareholders approved the annual report and financial statements, as well as the payment of dividends.

Dividends for 2022 will amount to 17 rubles. 97 kop. per outstanding share. Taking into account the payment of interim dividends from profit for the first half of 2022, the total dividend per share for 2022 was 38 rubles. 36 kopecks, and the total amount of funds for payment is 406.5 billion rubles.

This corresponds to 50% of IFRS net income for 2022 attributable to Rosneft shareholders.

According to investment strategist at Arikapital Sergey Suverov, Rosneft’s dividends in 2022 are the second largest in the company’s history. At the same time, the current dividend yield for 2022 on Rosneft shares is at the level of 10.1%. This is a very high figure for the Russian market. For example, the same indicator of PhosAgro is 8.9%, Norilsk Nickel – 6.7%, Novatek – 6.1%, Polyus – 5%, Surgutneftegaz – 3%.

“The company has once again demonstrated to its shareholders that even under conditions of strong external pressure, it is able not only to maintain economic stability and show stable financial results, but also to fulfill its obligations to its shareholders. At the same time, not all large Russian companies care so much about their shareholders. A vivid example is Gazprom, which refused to pay final dividends for 2022 and limited itself to only interim dividends. Rosseti, Atomenergoprom, Alrosa, as well as all large metallurgical companies (Severstal, Rusal, Norilsk Nickel, NLMK, MMK, TMK, Mechel) also refused to pay final dividends for 2022, which at the same time have one of the lowest tax burdens in the Russian market,” said Suverov.

He also noted that against this background, the growth of Rosneft shares on the Moscow Exchange is not surprising. So, since September 2022, the company’s quotes have skyrocketed by 90%. This speaks to the confidence of investors and shareholders and their faith in the company’s business model. Another interesting fact confirming the attractiveness of Rosneft securities on the market is the more than threefold increase in the total number of shareholders of the company over the past year.”

As noted in the annual report of the oil company for 2022, the total number of shareholders from September 2021 to November 2022 increased by 3.4 times – up to 796.6 thousand people. At the same time, the growth since May 2020 is even more impressive – by 4.2 times.

The market highly appreciates further growth prospects for Rosneft’s quotes. In their report on the oil and gas industry of the Russian Federation, analysts at Sber CIB (Sber’s corporate investment unit) raised their recommendation on Rosneft shares by 49% at once – up to 520 rubles per share, and also gave a “buy” recommendation. At the same time, target prices for other companies in the oil and gas sector were increased from 3% to 23%.

In the report, Sber acknowledges that among all companies in the oil and gas sector, only Rosneft in 2023 can receive a high net profit. According to bank analysts, the oil giant’s net profit in 2023 could grow by almost 42%, to 1.15 trillion rubles, and operating profit by 4.1%, to 1.77 trillion rubles. Thus, Sber CIB predicts an increase in the company’s dividend in 2023 to 52 rubles per share, and the dividend yield may exceed 12%.

Even higher expectations for the growth of shares of “Rosneft” has the bank “Renaissance Capital”, which in its May report announced a forecast of 640 rubles per share.