Russian oil major Lukoil to pay full 2021 dividend

Russian oil major Lukoil will recommend paying a full final 2021 dividend of RUB537 per share and will call an extraordinary general shareholder meeting on December 5 to approve it, according to Interfax. 

Previously, in the summer of 2022 Lukoil delayed the final dividend payment due to difficulties in processing the payments under Western sanctions for Russia’s military invasion of Ukraine.

“By paying the full 2021 final dividend, Lukoil has created a positive catalyst for its stock price. We fully expected some sort of dividend, but were not certain the full dividend policy would be adhered to given other needs for cash in this crisis year,” BCS Global Markets commented.

BCS GM estimated the dividend yield at 11% and sees potential for boosting expectations for 2022 dividends “given the company’s adherence to its dividend policy of 100% of FCF [free cash flow]”. The analysts also see a possibility for an interim 1H22 dividend carrying a yield of 7.5%-8.5%. 

As followed by bne IntelliNews, prior to Russia's military invasion of Ukraine, Lukoil reinforced its investment case of being one of the most valuable Russian oil and gas blue chips in 2019 with the pledge to pay at least 100% of cash flow in dividends and by the launch of the second $3bn buyback programme.