Novatek will allocate more than 45 billion rubles for dividends for 2021

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Today I will analyze the dividend flows of the Novatek company: dividends in 2021, the established policy in this matter. What payments will investors receive in the near future?

What is the annual return on shares and what can shareholders expect in the future? Along with this, I will show you when you should buy securities, what the register closing date is and how it differs from the dividend cut-off date. The reader will find a list of the best brokers with high reliability.

All company dividends for the last 10 years

When will dividends be paid in 2021?

The register fixation date for identifying Novatek shareholders entitled to receive dividend payments is set for October 10, 2019.

However, since the Moscow Exchange operates in the “T + 2” format (trading day + 2 business days), the cut-off date for Novatek dividends is October 8.

To receive dividends, you must be a shareholder of the issuer as of the close of trading on the cut-off day.

Funds are credited to investors' accounts, as a rule, 1-4 weeks after the closure of the register of shareholders to record the participants entitled to receive dividends.

NOVATEK shareholders approved dividends for 2021 and approved financing transactions for Arctic LNG-2

Moscow, April 23 – Neftegaz.RU news agency.

NOVATEK shareholders approved the amount of dividends for 2021 and elected a new composition of the company’s board of directors. The annual general meeting of shareholders (AGM) of NOVATEK was held on April 23, 2021. NOVATEK’s final dividends for 2021 will be paid in the amount of RUB 23.74/share (RUB 237.4/GDR), excluding interim dividends paid for the half-year results 2021, in the amount of 11.82 rubles/share (118.2 rubles/GDR). Total dividend payments for 2021 will be 35.56 rubles/share (355.6 rubles/GDR). Compared to 2019, when NOVATEK paid shareholders dividends in the amount of RUB 32.33/share (RUB 323.3/GDR), the dividend amount for 2021 has been increased by 10%.

A total of 107.971 billion rubles will be allocated for the payment of dividends based on the results of 2021, which corresponds to NOVATEK’s new dividend policy of paying at least 50% of consolidated net profit under IFRS, adjusted for items not related to core activities and non-cash items. Let us recall that in December 2021, NOVATEK adopted a new dividend policy, according to which the minimum target level of dividend payments increases from 30% to 50% of adjusted net profit under IFRS. The possibility of such a step was discussed earlier, when in September 2021 NOVATEK’s guarantees for debt service to creditors of the Yamal LNG project were lifted. Moreover, they were talking about increasing the payment rate already when calculating dividends for the entire 2021. It is planned that the new dividend policy will help increase the investment attractiveness of the company and increase the total income of shareholders.

The date on which persons entitled to receive dividends for 2021 are determined is set for May 7, 2021. Dividends will be paid in cash no later than June 15, 2021.

Also, during the AGM, NOVATEK shareholders agreed to enter into interested-party transactions, which at the same time constitute a major transaction for NOVATEK (the transaction price exceeds 50% of the book value of NOVATEK’s assets, determined according to its financial statements as of the last reporting date). We are talking about the possibility of pledging NOVATEK's share of participation in Arctic LNG-2 in the amount of 60% of the authorized capital as part of raising project financing for the project. Lenders can be Sberbank, Gazprombank, VEB State Corporation, Bank GPB International SA, Otkritie Financial Corporation Bank, as well as other credit organizations, development institutions and export credit agencies. Previously, NOVATEK's board of directors analyzed possible transactions and recommended that shareholders approve it during the AGM, considering that it would not lead to negative consequences. This will ensure lower price parameters for external financing in euros as a result of a diversified composition of lenders, incl. participation of foreign creditors. At the same time, the burden on NOVATEK to provide financing for the project will decrease.

In addition to approving dividends and approving these transactions, NOVATEK shareholders made a number of decisions on issues traditional for the AGM. In particular, the annual report and annual financial statements of the company according to RAS were approved, and a new composition of the board of directors and the audit commission of the company was elected. The following were elected to the Board of Directors:

• A. Akimov - Chairman of the Board of Gazprombank,
• A. Le Foll - Senior Vice President of the Total concern for the North Sea and Russia region,
• R. Castaigne - member of the board of directors of VINCI,
• M. Dominic - Managing Director of Total Austral,
• T. Mitrova - Director of the Energy Center of the Moscow School of Management Skolkovo,
• L. Mikhelson - Chairman of the Board of NOVATEK,
• A. Natalenko - Honored Geologist of Russia, laureate of the State Prize of the Russian Federation,
• V. Orlov - President of the Russian Geological Society (RosGeo), laureate of the State Prize of the Russian Federation in the field of science and technology,
• G. Timchenko is a member of the board of directors of SIBUR Holding, chairman of the economic council of French and Russian enterprises of the Franco-Russian Chamber of Commerce and Industry, chairman of the Russian part of the Council of the NP Russian-Chinese Business Council.

The composition of NOVATEK's board of directors remained the same, with the exception of the replacement of a Total representative. The place of the departed Senior Vice President of the Total concern for the North Sea and Russia region M. Borrell was taken by M. Dominic. At the meeting, the board of directors of NOVATEK elected A. Natalenko as chairman of the board. R. Kasten, T. Mitrova and V. Orlov were identified as independent members of the board of directors. The board of directors also formed committees which included:

• Strategy Committee - T. Mitrova (chairman), A. Akimov, A. Le Foll, D. Marion, A. Natalenko and G. Timchenko.
• Audit Committee - R. Castaigne (chairman), T. Mitrova and V. Orlov.
• Remuneration and Nominations Committee - V. Orlov (chairman), R. Castaigne and T. Mitrova.

PricewaterhouseCoopers Audit was approved as NOVATEK’s auditor for 2021.

How to buy shares and receive dividends

Novatek's securities are listed on the Moscow Exchange. Therefore, the simplest and most correct way would be to open an account with a Russian licensed broker and purchase shares with it.

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Novatek will allocate more than 45 billion rubles for dividends for 2021

Novatek shareholders approved the payment of dividends for 2021 in the amount of eight rubles per ordinary share, or 80 rubles per GDR (global depositary receipt), a TASS correspondent reports from the annual meeting of shareholders.

Taking into account the interim dividends paid for the first half of 2021 - 6.95 rubles per share - Novatek’s total dividend payments for 2021 will be 14.95 rubles per ordinary share, which is 7.6% more than the 2021 level , when, taking into account interim dividends, the company paid 13.9 rubles per share.

In total, Novatek will allocate 45.39 billion rubles for dividends in 2021, which corresponds to the dividend policy of paying at least 30% of consolidated net profit under IFRS, adjusted for items not related to core activities and non-cash items.

The register for receiving dividends for 2021 closes on May 3.

Board of Directors

The annual meeting of Novatek shareholders on Friday elected the company's board of directors, which included all current board members, a TASS correspondent reports.

Nine people were re-elected to the board of directors of Novatek: two representatives from Total and Societe Generale - Michael Borrell and Robert Castaigne; Andrey Akimov - Chairman of the Board of Gazprombank; Burkhard Bergmann - Advisor for International Affairs to the Chairman of the Board of Gazprom, member of the advisory board of the Union of German Science Foundations; Leonid Mikhelson - Chairman of the Board of Novatek; Alexander Natalenko - Chairman of the Board of Directors of Novatek; Viktor Orlov - President of the Russian Geological Society; Gennady Timchenko - shareholder of Novatek; ex-vice mayor of Moscow Andrei Sharonov.

Re-elected as the company's auditor for 2021.

The company's shares are listed in Russia on the Moscow Exchange, global depositary receipts are listed on the London Stock Exchange (LSE). The largest shareholders of Novatek are the structures of Russian businessmen Leonid Mikhelson and Gennady Timchenko, as well as the French Total, which owns 18.64% of the company's shares.

Supplies from Yamal LNG

Novatek has already begun the first deliveries of liquefied natural gas under large contracts. The head of the company, Leonid Mikhelson, told reporters about this. “We’ve already started. From April 1,” he said, answering a related question.

“About 3 million tons have been contracted for Gazprom; it will receive five or six batches this year. The same volume of 3 million tons was contracted by [Yamal LNG] shareholder CNPC for the domestic market, 5 million tons from Total,” Mikhelson added.

The first loading of the tanker with liquefied gas from Yamal LNG took place on December 8. According to Mikhelson, the first batch of LNG will be sent to countries in the Asia-Pacific region, most likely to China. The buyer was Novatek Gas & Power (a trading subsidiary of Novatek). Initial LNG supplies were spot, with deliveries under long-term gas contracts expected to begin in the second quarter of 2021.

Yamal LNG (50.1% from Novatek, 20% each from the French Total and Chinese CNPC, 9.9% from the Silk Road Fund) is the first in gas liquefaction. The project is being implemented on the basis of the Yuzhno-Tambeyskoye field (Yamal Peninsula) and involves the launch of three technological stages for the production of LNG with a capacity of about 5.5 million tons per year each. The first stage of the plant has now been put into operation, the second and third stages will be commissioned in 2018-2019.

"Arctic LNG - 2"

Negotiations between Novatek and potential investors in the company’s next liquefied natural gas project, Arctic LNG 2, have entered a more advanced stage, Mikhelson said at the annual shareholders’ meeting.

At the same time, he noted that the company would like to sign contracts with investors after the completion of its design.

“I have several partners. Some partners in the consortium are coming. “I see a more detailed discussion and interest,” he said. “We are not trying to speed up negotiations.” It would be more comfortable for us as partners when the FEED stage is completed (bass design stage - TASS note) - the price will be more clear, and market research is underway, [so] that there will be fewer questions in the final documents that will be signed ", - he said.

Mikhelson noted that Novatek is ready to cover the investments that the project will require in the next year and a half without attracting additional financing.

Construction of a hub in Kamchatka

Investors in Novatek's project to build a transshipment terminal in Kamchatka will be identified in the near future. Companies from the Asia-Pacific region are showing interest in the project, Mikhelson said.

“The construction of this hub is of great interest. Naturally, from large consumers in the Asia-Pacific region. This includes Korea, Japan, China, and all major consumers,” he noted. “I would like to say that specific negotiations are underway with companies from these countries.”

“I think that specific negotiations on investments and what kind of partners there will be will be determined in a relatively short time,” Mikhelson added.

According to him, Novatek is not interested in attracting portfolio investors to the project in Kamchatka: “It is better to have those partners who will be consumers in this market.”

Currently, Novatek is considering two sites for the construction of a terminal in Kamchatka, and plans to select one in the next month and a half. Answering the question about whether a site has been selected for the construction of a terminal in Kamchatka, Mikhelson said: “Almost yes, almost yes. There are two of them, I think, within a month or a month and a half they will be almost gone.”