Bashneft dividends when paid. Bashneft is expected to grow shares and large dividends
PJSC ANK Bashneft is a large oil-producing company, whose shares have been bringing their owners a stable income in the form of dividends for many years. At the end of 2016, the company is likely to postpone the payment of dividends to the end of 2017. This is due to an increase in capital expenditures for repair work at the company's refineries.
PJSC ANK "Bashneft" is a large backbone company for the development, production and refining of oil. According to Forbes magazine, the company has been among the world's ten most profitable companies for shareholders for several years.
In 2016, the Russian government initiated a deal to sell a controlling stake in Bashneft to Rosneft. The deal had a wide public response and influenced the growth of the company's share price. The significance of the event can be estimated by watching this video:
The capital of the company is represented by ordinary and preferred shares of type “A”. The composition of the shareholders of PJSC ANK Bashneft: PJSC NK Rosneft (50.08%), the Republic of Bashkortostan (25%), minority shareholders (24.92%).
Bashneft: dividends in 2017, who makes the decision?
The Articles of Association of PJSC JSOC Bashneft endows the General Meeting of Shareholders with the right to make decisions on the payment of income on shares. The draft resolution is presented to the meeting by the Board of Directors. The decision of the Board of Directors of the company contains a recommendation on the size, procedure and timing of dividend payments, the date of closing (cutting off) the register of shareholders entitled to receive dividends. Interim income can be paid based on the results of the first quarter, half year, or nine months. Dividends are paid out of the net profit received by the company after taxes.
PJSC ANK "Bashneft"
PJSC ANK Bashneft Dividend History
Chart 1. Amount of dividends of the Joint Stock Oil Company for the period 2012 - 2015 Source: official site of PJSC ANK Bashneft
Payment of dividends in 2017
At the end of 2016, the Board of Directors made a decision to recommend to the General Meeting of Shareholders (date - June 30, 2017):
- not to declare dividends on ordinary shares;
- the payment on preferred shares should be limited to the total amount of RUB 3 million. (0.10 rubles per share);
- the closure of the register of shareholders (dividend cut-off) is set for July 12, 2017;
- establish a payment schedule for preferred shares from July 12, 2017 to August 14, 2017;
- consider the issue of recommendations for the payment of dividends on shares at the end of 2017, taking into account the retained earnings of previous years and based on the results of 9 months of 2017 after the approval of the financial statements for 1 - 3 quarters by the board of directors. 2017 Nov.
The decision to postpone the payment of dividends is due to an increase in the company's expenses for improving safety and carrying out capital repairs at oil refineries at the request of Rostekhnadzor.
How to get dividends?
Information about dividends is published on the official website of the company. Payments are made according to the schedule by the company itself or on its behalf by the registrar keeping the register of the company's shareholders. The funds are transferred by bank transfer to the accounts indicated by the shareholders. The payment amount is calculated based on the type and number of shares owned by one shareholder. The register of Bashneft shareholders is maintained by Reestr-RN LLC.
For your information: prior to the acquisition in 2016 of a controlling stake in Bashneft by PJSC NK Rosneft, the register of shareholders was maintained by JSC Register.
How to become a shareholder of PJSC ANK Bashneft?
- Where to buy shares: PJSC "Moscow Exchange MICEX - RTS".
- Security code: BANE.
- How to buy: open a brokerage account with a broker (FINAM, BCS broker, ATON, Uralsib).
Financial performance of PJSC ANK Bashneft
Compared to the previous reporting period, the company's assets increased by 12%, capital by 8%, while revenue and net profit decreased by 2.8% and 12.7%, respectively.
Table 2. Main financial indicators of PJSC JSOC Bashneft according to IFRS (2014 - 2016).
Higher education. Orenburg State University (specialization: economics and management at heavy engineering enterprises).
July 16, 2017.
We continue to monitor the most interesting dividend securities. This time - Bashneft-p.
Traditionally, let's start with production and financial indicators.
Oil production in the 1st quarter of 2017 decreased by 9%.
Net income fell 40% in Q1 2017. Net debt is within normal limits.
Dividend
Payment policy
The amount of dividend payments is at least 25% of net profit under IFRS, provided that NetDebt / EBITDA does not exceed 2.
There are 2 scenarios for Bashneft dividends:
1. Negative scenario. Sechin will decide not to pay. Or he will pay 1 time, and then find reasons not to pay.
Let's look a little back in 2012. When Sechin bought TNK-BP, he said that Rosneft itself would receive TNK-BP dividends and assured that they would pay 25% of profit to IFRS. “This is our money, the parameters of the deal have been approved, and they take this aspect into account. This is fair, ”he said. Traditionally, TNK-BP has paid the highest dividends in the industry (over 40% of net profit). Sechin also said then that he intends to fight for the welfare of TNK-BP's minority shareholders. “I’ll break into the blackboard, as they say in Russian, so that you are happy with us,” he said.
And how did the story end? TNK-BP's dividend payments soon ceased. Already in 2013, when discussing the decision of the Board of Directors not to pay dividends for the last year, the hall exploded. Previously, the TNK-BP minority shareholders didn’t say anything except “thank you” at the shareholders' meetings. Minority shareholders at the meeting were indignant. “Dividends are the only issue that worries us! First time they don't get paid! Where's the money? - shouted from the audience. Rosneft Vice President for Legal Support Igor Maidannik, who chaired the meeting, tried to call the public to order, suggesting that the speeches be postponed until the end, when the entire agenda has been passed. This proposal caused a new storm of indignation. One of the minority shareholders got up with a sign on his chest: “We demand from Rosneft an offer or conversion at the price of September 2012”. He demanded that the shareholders be given the floor, and the presidium had to yield. Four minority shareholders stepped forward from the stage, nostalgic for the high dividends of the past, calling Rosneft and its president, Igor Sechin, to account.
How did Sechin argue for non-payment? Very simple: An audit of TNK-BP's assets showed that the company had not invested enough in infrastructure and development, and the new owner plans to spend more profits on this. You need to invest, not pay dividends.
It is possible that history will repeat itself with Bashneft. On the negative side, we can add that even if Sechin pays 50% of Bashneft's profits under IFRS in 2017 in the form of dividends in 2017, there is no certainty that in the next years he will not say that we will no longer withdraw money, but will invest.
Now let's look at why non-payment scenarios are unlikely.
2. Positive scenario. Sechin will pay 50% and continue the policy of paying 25-50% of IFRS profits, which was established before his arrival.
After Sechin bought Bashneft, the situation with TNK-BP is very similar, but with one big exception. Instead of TNK-BP minority shareholders, there is a large shareholder - Bashkiria, which owns 25% of shares, which needs dividends to replenish the budget. The budget of Bashkiria for 2017 and for the planning period of 2018 and 2019 provides for annual dividends of 5 billion rubles. For example, last year dividends to the budget of Bashkiria amounted to 7.2 billion rubles based on 164 rubles per share. To fulfill the norm of 5 billion, it will be enough to pay 114 rubles per share.
But the head of Bashkiria Rustem Khamitov said that the company in 2017 will keep payments at the level of last year, that is, 50% of profit under IFRS. It turns out all the same 146 rubles per share.
In addition to the fact that the budget of Bashkiria lives on dividends and the Head of the Region confirmed that payments will remain, Sechin himself needs to repay the debts to Rosneft, and for this it is very convenient to pump dividends from Bashneft. Everything turns out smoothly, in theory)
In my opinion, the more likely scenario is that dividends will be 50% of IFRS, that is, 146 rubles and in the future payments will continue in the amount of 25-50% of profit under IFRS. For prefs it is 12% per annum of current prices. In terms of potential dividend yield, this is the best paper in the oil sector.
Photo: RIA Novosti / Grigory Sysoev
At the end of 2017, the issue of the payment of dividends on common and preferred shares will be considered, taking into account retained earnings of previous years and dividends based on the results of nine months of 2017, the company told RNS.
“In August 2017, dividends will be paid at the end of 2016 to the owners of preferred shares - in the amount not lower than that provided for by the charter of the enterprise. At the end of 2017, the issue of payment of dividends on ordinary and preferred shares will be considered, taking into account retained earnings of previous years and dividends based on the results of 9 months of 2017, "Bashneft said.
The company explained that the basis for calculating the company's dividend payments is the group's net profit under IFRS. EBITDA and net debt indicators are also analyzed.
“At the same time, one should not forget about the negative impact of the tax maneuver, unfavorable market conditions. In 2017, due to the completion of the tax maneuver, a net increase in customs costs, mineral extraction tax and excise taxes in the amount of 5.5 billion rubles is expected, "the company said.
Bashneft's net debt, including prepayments under long-term contracts for the supply of oil and petroleum products, increased in 2016 from RUB 115 billion to RUB 163 billion due to the attraction of a long-term prepayment of $ 500 million (RUB 39 billion) in January 2016. The funds raised made it possible to ensure the payment of dividends at the end of 2015 in the amount of RUB 29 billion.
As Bashneft added, in order to maintain the pace of development of the company, restore the economic potential of refining after the accident at the hydrocracking unit in the summer of 2016, as well as in connection with the need to improve the safety of oil refining facilities in 2017 (peak capital costs - summer-autumn) , by 15%, to increase investments in the conditions of a decrease in net profit by 8.6% in 2016. At the end of December 2016, Rostechnadzor submitted a list of more than 1.8 thousand violations, the elimination of which would require the company to invest at least 39 billion rubles.
“By the end of 2017, the company intends to eliminate almost 45% of violations that are most critical from the point of view of ensuring the safety of employees and production facilities in order to further be able to engage in long-term planning of dividend payments in conditions of an acceptable level of risks in the field of industrial safety,” the company said. ...
The annual general meeting of Bashneft shareholders will be held on June 30, 2017 in Ufa. The date of compiling the list of persons entitled to participate in the general meeting of shareholders is June 5, 2017.
At the end of 2015, the company allocated 50% of its net profit in accordance with International Financial Reporting Standards (IFRS), or 29.132 billion rubles, for dividends, the company reports. Payment of dividends on common and preferred shares amounted to 164 rubles per share. At the end of 2014, the company paid dividends in the amount of 20.07 billion rubles, which amounted to 113 rubles per share.
Interim dividend cutoffs for 6 months of 2016 have already passed. One cut-off left Abrau Durso, which will take place on 11/19/2016 (in T + 2 mode on 11/16/2016). Dividend of 0.41 rubles per share. DD is less than 1%.
One of the most talked about events last week is the purchase of a controlling stake by Rosneft Bashneft... And if for ordinary shares for minority shareholders there is an offer to buy back shares, then for holders of preferred shares it is important that Bashneft can continue to pay dividends in amounts, at least comparable to the dividends for 2015, which amounted to 164 rubles for JSCs and APs.
Fears that Rosneft will stop paying dividends after buying Bashneft are not groundless. This already happened when Rosneft acquired TNK BP in 2013.
During the takeover of TNK-BP, which ended in March 2013, the head of Rosneft, Sechin I I, when asked about the possibility of distributing dividends, answered: “The issue of dividends is not even worth it, this is all our money.” As a result, minority shareholders never saw dividends
The purchase by Rosneft of a controlling stake in Bashneft is perceived with some concern in Bashkiria. Bashneft is the largest taxpayer to the regional budget; the company finances sports teams and some social projects. The head of Bashkiria Rustem Khamitov said in an interview with TASS that the republic receives from Bashneft annually 32-35 billion rubles, or an amount comparable to 30% of the republican budget. In particular, the volume of charitable assistance to the oil-producing regions of the republic is 1.5 billion rubles, support for hockey - 2.5 billion, tax revenues exceed 20 billion rubles, dividends based on the results of work in 2015 amounted to 7.2 billion rubles. Whether this figure will remain unchanged is the main question that worries not only economists and financiers.
Bashkiria owns a blocking stake in Bashneft, but the president of the republic Rustem Khamitov has repeatedly said that he will not sell the stake. According to him, he has already met with the management of Rosneft and tentatively agreed to maintain tax, dividend and social payments at the level of 2015, the newspaper Vedomosti writes.
Bashkiria will retain leverage over Bashneft after the purchase of a controlling stake in the Bashkir company by Rosneft. This was announced by Russian President Vladimir Putin at the Russia Calling forum, the Kommersant newspaper reports with reference to Interfax.
“We are not indifferent to the position of Bashkortostan, our federal partner, which has a significant part of the Bashneft stake, which directly addressed us with a request to retain their influence on the management of this stake,” he said. - In such a structure (purchase by Rosneft - editor's note) - this is also possible.
“It is important that the head of Bashkiria Rustem Khamitov defended the republican conditions - brand, dividends, charity, registration in the republic and tax revenues in the same volume,” the experts noted as an achievement.
Good relations between the head of Rosneft, Igor Sechin, and the head of Bashkiria, Rustem Khamitov, allow us to hope not only for dividends from the republican package - 25% plus one share of Bashneft, but also for tax revenues and financing of programs for the development of the oil refining complex and the republic, which bears a large industrial and environmental burden, ”economist Konstantin Kuzminykh added a note of optimism.
It turns out that, according to information from various sources, the President of Bashkortostan Rustem Khamitov has agreements with the government and personally with the head of Rosneft Sechin that dividends will be preserved in the same amount that were paid at the end of 2015, that is, 164 rubles per JSC and AP.
But Bashkortostan owns only ordinary shares. What will happen to dividends on preferred shares? There are fears that Rosneft may pay on the AP STRICTLY according to the charter, namely, 10% of the AP nominal equal to 1 ruble. BUT! The charter contains a condition for the additional payment of the dividend on preferred shares up to the size of the dividend on ordinary shares in the event that dividends on ordinary shares turn out to be more than on preferred shares.
The announcements from various sources about the preservation of dividend payments inspire cautious optimism.
But what about the offer, which, according to the current legislation, Rosneft should make to minority shareholders?
According to the current legislation, Rosneft must provide an offer to the minority shareholders of Bashneft for the sale of shares, the head of the Ministry of Economic Development Alexei Ulyukaev told reporters on October 13, 2016
“As far as I know, according to the law, it should,” he said, answering the question whether Rosneft will provide an offer to Bashneft's minority shareholders.
According to analysts, minority shareholders fear that Rosneft, which has gained control over Bashneft, will not offer them an offer to buy back shares, Interfax writes.
On the eve, in addition, it became known that the State Duma in November may consider a bill that will release state-owned companies from the obligation to buy back shares from minority shareholders of the companies they acquire, if the transactions were initiated by acts of the president or government. The bill was introduced at the beginning of July by the deputy of the State Duma of the previous, sixth convocation from "United Russia" Alexander Metkin.
Experts in the field of corporate governance interviewed by Interfax disagreed over whether the provisions of the draft law apply to the deal on Rosneft's acquisition of a controlling stake in Bashneft.
Some of them believe that the directive to state representatives on the Rosneft board of directors on the purchase of Bashneft and the government order of October 10 on the disposal of shares in favor of the state-owned company can be considered government acts pursuant to which the transaction was carried out.
Rosneft does not formally belong to the state, but according to IFRS it is affiliated with it - the company is controlled by the Rosneftegaz holding, which is owned by the Federal Property Management Agency, which, in turn, directly owned a controlling stake in Bashneft.
Under the current legislation, Rosneft must make an offer to minority shareholders at the purchase price of Bashneft's stake from the state within 35 days.
In the past, Rosneft's purchase of TNK-BP was accompanied by a conflict with minority shareholders over the offer price. After the forced buyout, the minority shareholders went to court for a long time with Rosneft, but in the end they still lost.
And if in relation to dividend payments we have positive statements from two presidents, then the offer is not yet clear.
In addition to the situation with Bashneft, there was also dividend news.
GK net profit " ALROSA"according to IFRS in 2015 amounted to 32.2 billion rubles. Compared to a net loss of 16.8 billion rubles. at the end of 2014 and in 2016 will grow 2-3 times.
“It will be, I think, 2-3 times higher than last year. Much higher, let's just say, "- said the president of the company Andrei Zharkov.
As a result, the company plans dividends for 2016 in the amount of 50% of net profit, as in the previous year.
“Net cash flow allows us to pay dividends in the same amount as in that year. I mean 50%, ”Zharkov specified.
According to the Head of Gazpromenergoholding Denis Fedorov, the financial performance of all three subsidiaries ( Mosenergo, OGK-2 and TGK-1) according to IFRS, must exceed the level of 2015 in the current year, all three energy companies plan to return to shareholders from the profit according to IFRS at least 35 percent.
Gold mining company " Pole»Adopted a new dividend policy. Now the company will pay dividends every six months at 30% of EBITDA if the ratio of net debt to EBITDA is less than 2.5, Polyus said in a statement.
The payment of special dividends remains at the discretion of Polyus's board of directors. The company expects to pay the first dividends under the new policy already at the end of the second half of 2016 (the board of directors may make a decision in the first half of 2017).
Rosimushchestvo asked companies with state participation for a forecast of dividend payments for 2016, 2017 and 2018 financial years, Interfax reports, citing a source in one of the state-owned companies. The request was received by companies included in the "91-r list" (a list of companies where the position of the state as a shareholder is determined by the government), the source said.
Rosimushchestvo is waiting for a response until October 14. In the document, the head of the department, Dmitry Pristanskov, refers to the results of a meeting with Prime Minister Dmitry Medvedev on September 21, 2016. At the meeting, the departments were instructed to take into account the direction of dividends by state-owned companies in the next three years, 50% of profits. According to another source, there is no final decision yet.
The Ministry of Finance has already calculated how much the prolongation of the norm introduced in 2016 to replenish the budget will bring, according to which state-owned companies must allocate at least 50% of profits under RAS or IFRS for dividends. According to the department, 280 billion rubles. additional income per year will receive the budget in the next three years.
Ministry of Finance of Russia expects to receive interim dividends this year from a number of state-owned companies and banks, Deputy Finance Minister Alexei Moiseev told reporters.
“This issue is being discussed. In principle, despite the fact that we are with you at the beginning of October, even practically in mid-October, we, of course, expect that a number of companies will be able to receive interim dividends, ”Moissev said.
According to him, when it comes to interim dividends, decisions should be made for each company separately. “But after such a decision is made, it is necessary to go through quite serious corporate procedures,” the deputy minister explained.
Well, dividend events are boiling, dividends for 6 months of 2016 are credited to accounts, and the season of corporate reporting for 9 months of 2016 has already begun, and we can expect decisions of the issuers' board of directors to pay interim dividends for this period.
Dividends forever!
