Surgutneftegaz is planning to increase dividend payments for 2011, a move likely to maintain its status as a darling of foreign investors despite its forecasts for only modest rises in output this year and next.
The company, the biggest holding in Swedish fund manager East Capital's $2 billion flagship Russia Fund, paid 1.18 rubles per preference share last year — a yield of 6 percent at current prices.
"The board of directors will meet soon [to discuss the dividend]. We will raise it, we will, we will," deputy general director Vyacheslav Nikiforov told a conference.
He also predicted a marginal rise in oil output this year to 62 million tons, up from 61 million tons in 2011, and production of 62 million to 63 million tons in 2013.
Fund managers at Sweden's East Capital told an investor conference Thursday that Surgut shares accounted for nearly 10 percent of its Russia fund — its biggest holding — based on the dividend payments and a reported $30 billion cash pile.
Surgut, Russia's fourth-largest oil producer, last month reported an 81 percent rise in 2011 net profit to nearly $8 billion. Troika Dialog analysts estimate the dividend on preference share for 2011 could therefore be 2.148 rubles — a yield of 10 percent.
Surgut is also among the non-state owned oil companies lobbying for access to lucrative offshore projects, according to biggest private producer LUKoil.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.