Russia's Bashneft recommends record dividend amid reorganization

4/23/2014

Russia's Bashneft recommends record dividend amid reorganization

JAKE RUDNITSKY and ELENA MAZNEVA

MOSCOW (Bloomberg) -- OAO Bashneft’s board recommended a final dividend of 37.5 bn rubles ($1.05 bn) that would boost the Russian oil company’s 2013 payout to a record.

While the total per share isn’t available due to a reorganization, it said in a statement, it would be higher than the 2010 dividend of 234.45 rubles per share, the previous record. Bashneft paid a dividend of 199 rubles per share, totaling 45.2 bn rubles, for the first nine months of 2013.

Bashneft, controlled by billionaire Vladimir Evtushenkov’s AFK Sistema, boosted output 4.4% to a record 322,000 bpd last year after the company began production at the Trebs and Titov fields. The producer and refiner offered a buyout to shareholders that opposed a reorganization in February that canceled over 20% of its ordinary shares.

“Can Bashneft balance growth with high dividend payouts? I think so,” Ildar Davletshin, an analyst at Renaissance Capital in Moscow, said by phone. “The private model has a clear advantage over state-owned companies like Gazprom, where this goal has been elusive.”

Trading of Bashneft shares was halted on April 22 due to a change in deadlines for the company’s reorganization, the Micex exchange said. Ordinary shares closed at 2,119.80 rubles on April 21 in Moscow, up 10% this month.

The record date for the dividend is May 6 and shareholders will vote on the payment at the annual meeting on June 10, the company said in the statement on its website.

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