Rosneft to pay record dividend as oil prices rise

Russia’s state-owned oil giant Rosneft PJSC has pledged a record dividend amid soaring oil prices.

It is understood that in 2021, Rosneft achieved record revenue as global oil demand rebounded from the epidemic, pushing up oil prices. According to the latest regulations, the company’s dividend payout ratio is at least 50% of net profit. As a result, the company’s board of directors recommended a dividend of 23.63 rubles per share for the second half of 2021, bringing the full-year dividend to an all-time high of 41.66 rubles. Shareholders will vote on the dividend proposal at the annual general meeting on June 30.

Separately, last week Russian gas giant Gazprom PJSC said it had offered its highest dividend ever, benefiting from tight supplies in Europe.

The companies’ decision to pay dividends will benefit the Russian government the most, as the Russian government is the largest shareholder in both companies.

It’s worth noting, however, that some foreign investors may have difficulty accessing the dividend due to Russia’s counter-sanctions. According to a decree in March, Russian companies must transfer funds owed to investors or lenders in “unfriendly countries” to special bank accounts in rubles. The central bank said that funds can only be transferred from these accounts, or converted into another currency, with special permission.

Rosneft’s second-largest shareholder is British Petroleum (BP.US) with a 19.75% stake. But in response to the Russian-Ukrainian conflict, BP announced at the end of February that it would sell its stake in Rosneft.

This is followed by QH Oil Investments, an oil investment company affiliated to Qatar Investment Authority, Qatar’s national wealth fund, with an 18.46% stake. Unlike the UK, however, Qatar was not included in the list of “unfriendly countries” published by the Russian government in March.

This article is reprinted from: https://news.futunn.com/post/16008748?src=3&report_type=market&report_id=206928&futusource=news_headline_list
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