Rosneft intends to pay annual dividend as oil prices rise

Rosneft intends to pay annual dividend as oil prices rise

Web Desk
June 1, 2022

Rosneft intends to pay annual dividend as oil prices rise

For 2021, the board recommends a price of 41.66 rubles per share.
It’s possible that foreign investors will have trouble being paid.

Rosneft PJSC, Russia’s oil powerhouse, promised record dividends as oil prices rise, however some overseas investors may struggle to get the payout.

The board recommended 23.63 rubles per share, bringing full-year dividends to an all-time high of 41.66 rubles in 2021. Russian gas giant Gazprom PJSC announced its highest-ever dividend after profiting from a European supply shortage.

As the largest shareholder in both enterprises, the Russian state will benefit the most from their decisions. Following President Vladimir Putin’s limitations, many international investors may have difficulty receiving their reward.

Russian enterprises must move money due to investors or lenders from “unfriendly states” to designated bank accounts in rubles. According to the Russian central bank, moving funds from certain accounts or converting them to another currency requires special authorization.

Rosneft’s record payout comes on the heels of record earnings in 2021 as global oil consumption recovered from the epidemic, driving up prices. According to international financial reporting standards, the company’s payout policy is 50% of net income.

Rosneft shares drop 2% to 393.50 rubles at 12:27 p.m. in Moscow, wiping off earlier gains as the Russian stock market fell. At the annual general meeting on June 30, shareholders will vote on the dividend recommendation.

BP Plc, with a 19.75 percent interest, is the oil producer’s second-largest shareholder. In response to Russia’s invasion of Ukraine, the UK energy major stated at the end of February that it will sell its Rosneft stake.

The Qatar Investment Authority controls QH Oil Investments, which has an 18.46 percent interest. Qatar, unlike the United Kingdom, is not on the Russian government’s list of “unfriendly states,” which was published in March.

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