Dividends on Mechel preferred shares in 2021 - size and register closure date

About the rating

Of more than 150 Kazakhstani companies that issue securities on KASE, only 54 joint-stock companies made dividend payments in 2021. The total volume of dividends from these organizations amounted to 897.28 billion tenge, which is 2.58 times more than in 2016.

The top twenty dividend payers paid their shareholders 877.31 billion tenge, which is 97.8% of the total volume of dividends of issuers of the Kazakhstan Stock Exchange. Compared to the previous year, the figure increased 2.6 times.

The noted dynamics of growth in dividend payments generally corresponds to the results of the companies’ operating activities and improved indicators of their profitability, says Stanislav Chuev, Deputy Director of the Research Department at Halyk Finance. The analyst associates the improvement in the profit situation with the “thaw” in the resource sector of Kazakhstan, which occurred after a significant increase in world prices for our country’s main raw materials export goods, primarily oil and metals. The expert points out that the most significant increase in dividends was observed among resource exporters, who benefited most from the positive dynamics of quotations on international commodity exchanges.

The top 20 dividend payers are dominated by financial sector companies – there are seven of them in the ranking. Five companies are from the oil and gas industry. The ranking also includes enterprises from the metallurgical, telecommunications and electric power industries.

ERG unsealed SSGPO and Kazchrome capsules

The past July and September became a real holiday for holders of preferred shares of JSC SSGPO. Such dividends on shares have not been accrued since the moment the enterprise became a joint-stock company...

Swag from the “Eurasians”

Thus, according to the decision of Eurasian Group LLP dated June 30, 2017 (photo No. 1), the annual financial statements of SSGPO JSC were approved, the audit of which was carried out by a consulting company.

According to the decision, part of retained earnings, including part of net income as of December 31, 2021, was used to pay dividends in the amount of 19,500 tenge per share, both common and preferred. Let us remind you that the par value of one share of SSGPO JSC is 1 thousand tenge.

It was decided not to distribute the remaining part of retained earnings, including part of the net income. Shareholders began receiving their blood on July 14.

A little over a month has passed, and shareholders are happy again. By the next decision dated August 28, for the first half of 2021, dividends in the amount of 14,700 tenge per share were accrued from retained earnings. Payments began to be made on September 12.

Meanwhile, on September 27, a general meeting of shareholders of TNC Kazchrome JSC was held in Aktobe, at which it was decided to accrue and pay dividends in the amount of 40,000 tenge per share from Kazchrome’s retained earnings!

The shareholders (holders of preferred shares) hardly expected such swag from the “Eurasians”. And there were reasons for that...

ENRC's shameful defection

If we talk about the pessimistic expectations of shareholders, then it is worth going back to 2013. Back in the spring, in April 2013, major shareholders of ENRC announced the delisting of the company's shares on the London Stock Exchange (LSE).

The statement was preceded by a number of corruption scandals. Thus, in April 2013, the British Serious Fraud Office opened an investigation into suspected involvement of ENRC top managers in “fraud, bribery and corruption” when carrying out activities in Kazakhstan and African countries.

In addition, the delisting was preceded by scandals within the company itself. In particular, the name of ENRC CFO Zaure Zaurbekova was mentioned, who, according to the investigation, used her official position to conclude contracts in her own interests.

As for Africa, namely the Democratic Republic of the Congo, “putting out the fire” cost the Eurasians $1.25 billion. A scandal involving financial fraud at SSGPO JSC also surfaced.

The result was not long in coming. Stock market participants began to actively get rid of ENRC shares, although at that time they were already in free fall.

As a result, on November 25, 2013, the exchange announced that the Financial Conduct Authority (FCA) had canceled the listing of ENRC shares from the official list at the company’s request.

from the stock exchange in an environment of falling quotes, corruption scandals, litigation and intrigue among its managers, the authoritative publication EurasiaNet spoke harshly on this matter.

In place of ENRC, ERG - Eurasian Resources Group - emerged under increased state control and without any pretensions to publicity. As a result, 40 percent began to belong to the state represented by the Committee on State Property and Privatization of the Ministry of Finance of the Republic of Kazakhstan, 20.7 percent each to “Eurasians” Alexander Mashkevich and Alidzhan Ibragimov, another 18.6 percent to Patokh Shodiev.

In fact, the lack of publicity alarmed shareholders. As a result, their darkest expectations came true...

War with windmills

It is worth mentioning that, despite persistent rumors that there will be no more dividends, in 2013 SSGPO JSC still paid them. If we rely on information previously announced in the corporate media of SSGPO JSC, then in 2013 dividends were paid twice: in June 2013 - based on the results for 2012, and the dividend amount was 3,950 tenge per share. In September 2013, dividends were paid based on the results of the first half of 2013; the dividend amount was 4,608 tenge per share. Based on the results of the second half of 2013, it was decided not to pay dividends based on the decision of the shareholders.

But this “double payment” did not satisfy the shareholders.

As a result, this dissatisfaction led to the creation of the public association “Union of Shareholders” in Rudny, which united more than 300 owners of preferred shares living not only in Kazakhstan, but also in Russia, Germany, Canada, and Israel.

But, if at first the members of the “Union” talked about non-payment of dividends in the amount of more than 500 million tenge, then later they were talking about 30 billion, and causing damage not only to shareholders, but also to the state. By the way, a criminal case was opened on this fact back in December 2015, and a pre-trial investigation was launched, which was extended twice and terminated on April 21, 2021 due to the lack of evidence of a crime.

The stumbling block was precisely 2013. The position of the “Union” was as follows: from the financial statements of SSGPO JSC, posted in the financial reporting depository of the Ministry of Finance, it followed that based on the results of 2012, dividends on common and preferred shares were declared and paid in the amount of 8,558 tenge per share. Holders of preferred shares in July 2013 received only 3,950 tenge per share. The amount lost was 4,608 tenge per share. The management of the association justified its actions to pay dividends by decision No. 7 dated June 13, 2013 of the person who owns all the voting shares.

In September 2013, dividends were paid in the amount of 4,608 tenge per share. At the same time, the management of SSGPO JSC stated that these are dividends based on the results of the first half of 2013. These payments were justified by decision No. 8 of September 3, 2013. In fact, the management of SSGPO JSC, through their actions, managed, by dividing dividends based on the results of one year, to present them as dividends based on the results of two years! As a result, shareholders received a total loss of more than 500 million tenge for 2012, and at the end of 2013 they were left without dividends at all.”

An interesting document added fuel to the fire of this confrontation. The fact is that in August 2014, information leaked from the management of SSGPO JSC to social networks. More precisely, a screenshot taken from the computer of Lidia Polyanina, member of the board of SSGPO JSC.

The screenshot reflected the correspondence between the accounting department of SSGPO with the head office in Astana regarding the accrual of additional dividends from retained earnings based on the results of 2013. Moreover, the summary table indicated additional accruals for both SSGPO and Kazchrome. The amounts, I must say, are impressive. Only for SSGPO, according to the table, it was planned to pay more than 303.9 billion tenge from retained earnings at the rate of 49,218 tenge per share. For Kazchrome - more than 274.4 billion tenge at the rate of 36,552 tenge per share. But the shareholders never saw this money, which became the reason for the confrontation.

Another reason for doubt among shareholders was the protracted history of non-payment of taxes by SSGPO JSC. In 2009-2010, local Rudny matyrs recognized “SSGPO” as a violator of Article 209, Part 1 of the Administrative Code: “understating the amount of taxes and other obligatory payments in the declaration, calculation, application for the import of goods and payment of indirect taxes.”

As a tax audit revealed, the association underestimated its reported income figures by approximately 25 billion tenge. Then the bureaucratic and judicial red tape began. The story lasted about 4 years. The courts were postponed for various reasons, and the Tax Committee of the Ministry of Finance could not decide on the complaint of “SSGPO” against the actions of local tax authorities. As a result of lengthy “carpet negotiations”, a compromise was reached - the company was fined 3.7 billion tenge...

Entertaining mathematics

Meanwhile, at the end of 2014, dividends were also not accrued. By decision of August 26, 2015, it was decided that “the net income of the company for 2014 in the amount of 54 billion 94 million 367 thousand tenge should not be distributed. Dividends on common shares based on the results of 2014 will not be paid.”

In 2021, the situation repeated itself. Only this time the shareholders were completely taken aback - at the end of 2015, the losses of SSGPO JSC amounted to 9.5 billion tenge.

And suddenly, such generosity in 2017! But let's start with “generosity”. In 2014, the company made a profit of 54.9 billion, but there were no dividends. With 2015, everything is clear – losses. But the profit figure for 2021 was not heard either at the pretentious meetings of SSGPO JSC or in the corporate media. Although, this amount appears in the public domain - only 19.4 billion. Kazchrome's profit for 2021 amounted to 215.5 billion tenge.

So who really skimmed the retained earnings of the two ERG businesses? Let's do the math - it's simple. So, when registering SSGPO JSC, the shares were distributed as follows. Of the total number of shares – 6,500,000 – 5,850,000 common shares belonged to “Eurasians”. However, through intimidation and intimidation, under pain of dismissal from the company's employees, preferred shares were simply knocked out at 400 tenge per share with a par value of 1,000 tenge. As a result, today shareholders from among the company's employees have just over 119,000 shares left.

The same situation occurred at Kazchrome. Of the 7,903,485 shares, 654,085 shares were distributed to the company’s staff, but at the moment there are about 101 thousand of them left.

If we consider that the overwhelming majority of the shares of both enterprises belong to ENRC NV and are in the trust management of Eurasian Group LLP, then the situation is quite clear. Let's take a calculator. For SSGPO JSC, dividends for 2021 and the first half of 2017 amounted to a total of 34,200 tenge per share. The holders of preferred shares received about 4 billion tenge, but the “Eurasians” received more than 218 billion. For Kazchrome: about 40 billion to holders of preferred shares, and more than 222.3 billion tenge to “Eurasians”.

This is no accident

The question arises: why did the “Eurasians” need to withdraw such a sum, and from only two enterprises of this mining holding? There are a lot of assumptions, from the most fantastic to the most incredible, but in our country everything is possible. The valiant government convinces us of this over and over again.

So let's get creative. So, option one, and the most fantastic. Members of the NGO "Union of Shareholders" from the city of Rudny managed to reach heaven, their information was taken into account, and, as a result, sanctions came. The state demanded that the amounts that floated past the cash register be returned to the budget. Moreover, they decided not to wash dirty linen in public...

Option two, less fantastic, but still vague. The KazakhSTAN 2.0 Internet resource recently published a translation of two articles from the Opensourceinvestigations.com resource, in which the “gray cardinal” Bulat Utemuratov, one of the people closest to Nursultan Nazarbayev, a former high-ranking official, and now a businessman and billionaire, was accused of trying to “repress” the so-called “Eurasian troika”, that is, billionaires Patokh Shodiev, Alidzhan Ibragimov and Alexander Mashkevich, in order to take away their assets.

The articles were clearly custom-made, which allowed KazakhSTAN 2.0 to come to conclusions about a sharp aggravation of intra-clan contradictions in the immediate circle of the Kazakh president.

“In our opinion, it is inevitable for the simple reason that the multiple reduction in the legal, semi-legal and shadow income of the ruling elite in recent years, which in itself provoked a tougher struggle for access to sources of income, is now superimposed by numerous disagreements related to the upcoming transition supreme power in the country from Nursultan Nazarbayev to his successor(s).

As a result, the intra-elite confrontation in Akorda took on forms unusual in Kazakhstan, when a former prime minister was sent to jail due to inter-clan squabbles, and criminal cases against ministers, regional akims and other high-ranking government officials, including “security officials”, became commonplace. . Moreover, the intra-elite confrontation has begun to “spill over” when participants in one or another “battle” secretly take advantage of the foreign press and justice,” the publication writes.

Well, it's permissible. Although, as already mentioned, it is unlikely.

And one more moment, so to speak, from the “warmer” category. In Kazakhstan, a new law “On Currency Regulation and Currency Control” is being prepared for adoption. Its initiator and developer was the National Bank of Kazakhstan. By October 20, 2017, the bill must be submitted to the Prime Minister’s Office, and for consideration by parliament in December 2017.

According to the developer’s plans, the law should come into force in 2019. The main goal of the law is to introduce control over those flows carried out by branches of foreign legal entities. The National Bank says that approximately 10% of goods exports come from branches of foreign legal entities, and the regulator does not know how much revenue leaves Kazakhstan.

By the way, this innovation does not find understanding even within the government of the Republic of Kazakhstan. Thus, in its comments to the bill, the Ministry of Industrial Development echoes the Council of Foreign Investors. Their position - the requirement to conduct all transactions in tenge will significantly worsen the situation for foreign companies in Kazakhstan...

This will also affect the “Eurasians”. It is worth paying attention to one feature. In a statement, the so-called sole owner of voting shares in both Kazchrome and SSGPO said that he uses his dividends to repay intra-group loans as part of ensuring the financial stability of the company.

Please note - not loans to foreign banks, or second-tier banks of the Republic of Kazakhstan, but intragroup loans. Again, information about such loans is publicly available. Both Kazchrome and SSGPO have borrowed billions of dollars on a short-term basis in recent years. Who would doubt that! The list of potential borrowers also included ENRC Finance Limited and Eurasian Resources Group BV.

It would seem that what’s wrong with such loans? Everything is within the framework of the current legislation of the Republic of Kazakhstan. In addition, these transactions provide the opportunity to place funds for a short-term period at a higher interest rate than on deposits of second-tier Kazakh banks. In this regard, these transactions are more profitable for ERG enterprises in terms of placing temporarily available funds. At the same time, it is inappropriate to use this free money to repay existing loans to Russian and Kazakh banks, or pay dividends, since the loan funds were raised on a long-term basis for the purpose of investing in strategic projects.

There's just one caveat. At the general meeting of shareholders of SSGPO JSC based on the results of 2015, a murmur was caused by the issue on the agenda regarding the approval of the conclusion of major transactions by SSGPO JSC in 2021, as a result of which the company alienates or may alienate property, the value of which is 50 percent or more of the total size book value of assets. The price of the issue was 1.2 billion dollars in the equivalent of tenge 1 to 360. The interest rate is 7.5% in US dollars, or 11% in tenge. The return period is 180 calendar days with the right to extend up to 363 days. A great loan, considering that the company operated at a loss of more than 9 billion tenge.

Even more interesting is the information that was found in the public domain. Thus, during 2015, SSGPO already provided short-term loans to ENRC Finance Limited for a total amount of 2.2 billion US dollars. As a result of changes in the dollar exchange rate and revision of borrowing terms for some loans, a loss from restructuring was recognized. The association “lost” about $370 million on this deal.

Who was left in the black? "Eurasians". In the red are the shareholders and the budget of Kazakhstan. Expected legislative changes may close this shop of manipulations on the dollar exchange rate. Although, as already mentioned, these are just guesses. What was the real reason for the withdrawal of such a mass of assets from two ERG enterprises can only be guessed at. In any case, as the famous cartoon character Winnie the Pooh said: “This is for a reason”...

Vladimir SEREGIN

Screenshot from the computer of Lidia Polyanina, board member of SSGPO JSC: in 2013, Rudny shareholders were going to be paid 49,218 tenge per share...

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Dividends on Mechel preferred shares in 2021 - size and register closure date

Home → Dividends→ Mechel up shares - forecast, payment history

A table with the complete history of Mechel preferred dividends, indicating the amount of payment, the date of closure of the register and the forecast:

*Note 1: The Moscow Exchange operates on the T+2 trading system. This means that settlements for buying and selling shares occur within 2 business days. Therefore, to be included in the register of shareholders and receive dividends, you must be a shareholder 2 days before the cutoff.

*Note 2: Exact payout date varies by broker and issuer. The predicted nearest date for receipt of dividends to the brokerage account for Mechel up: July 30, 2021.

Total dividends of Mechel up shares by year and changes in their size compared to the previous year:

The amount of dividends paid by Mechel up for the entire period is 107,487 rubles.

Average amount for 3 years: 7.62 rubles, for 5 years: 9.96 rubles.

DSI indicator: 0.71.

You can buy Mechel up shares with minimal commissions from stock brokers: Finam and BCS. Free deposits and withdrawals. Online registration.

Brief information about the issuer Mechel PJSC ap

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Calendar with upcoming and past dividend payments

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JSC "SSGPO"

50 largest private companies (December 2019)

Revenue: 255.77 billion tenge Industry: MMC First head: Bereke Mukhametkaliev Number of personnel: 16,446 people Net loss: 11.84 billion tenge
JSC “SSGPO” is the largest iron ore company in the country, founded in 1954. The JSC includes the Sokolovsky, Sarbaisky, Kacharsky and Kurzhunkulsky quarries, the Sokolovskaya mine, the Alekseevsky dolomite mine, beneficiation and pellet production factories, a metal rolling plant, etc.

SSGPO's revenue in 2021 amounted to 255.77 billion tenge, which is 17% more than 218.7 billion in 2017. The company received 244.19 billion tenge, or more than 95% of its revenue, from the sale of iron ore products, which is 18.1% more than the previous year (206.68 billion tenge).

However, SSGPO ended the year with a loss of 11.8 billion tenge against a profit of 20.35 billion tenge a year earlier. According to the company's report, this was mainly due to the resulting loss from exchange rate differences - 41.83 billion tenge.

98.16% of the shares of the joint-stock company belong to the ERG group.

50 largest private companies (December 2018)

Revenue : 218.7 billion tenge Industry : MMC First head : Bereke Mukhametkaliev Number of personnel : 18,384 people Net profit : 20.35 billion tenge

JSC SSGPO is the largest iron ore company in the country, founded in 1954. It includes the Sokolovsky, Sarbaisky, Kacharsky and Kurzhunkulsky quarries, the Sokolovskaya mine, the Alekseevsky dolomite mine, beneficiation and pellet production factories, a metal rolling plant, etc.

SSGPO's revenue in 2021 amounted to 218.7 billion tenge, which is 18.9% more than in 2021 (183.96 billion tenge). Net profit increased by 4.3%, from 19.5 billion to 20.35 billion tenge.

The company earned 95% of its revenue, or 206.68 billion tenge, from the sale of iron ore products, which is 17.69% more than the previous year (175.62 billion). Tax payments amounted to 36.2 billion tenge compared to 34.49 billion a year earlier, an increase of 5%.

In November 2021, SSGPO announced the implementation of an automated system with elements of artificial intelligence at the fifth-generation factory at the Kacharsky quarry. ERG plans to invest about $1.2 billion in the implementation of the project.

98.16% of the company's shares belong to the ERG group.

Top 50 private companies in Kazakhstan (January 2018)

Revenue: 183.96 billion tenge Industry: MMC First head: Bereke Mukhametkaliev Number of personnel: 18,783 people Net profit: 19.5 billion tenge

The production association of one of the oldest enterprises for the extraction and enrichment of iron ore in Kazakhstan (launched in 1957) includes four quarries in the Kostanay region: Sokolovsky, Sarbaysky, Kacharsky and Kurzhunkulsky.

In December 2021, SSGPO (ERG) entered into an export contract with key partner OJSC Magnitogorsk Iron and Steel Works for the supply of more than 30 million tons of iron ore raw materials until 2021. To fulfill this contract, SSGPO received a loan of $95 million from the Eurasian Development Bank (EDB) in 2021. The contract provided the company with guaranteed sales of products for the next four years. Its main consumers are enterprises in Russia and Kazakhstan.

SSGPO is a major taxpayer in the Kostanay region: in 2021, its taxes of 34.5 billion tenge amounted to 25.3% of total revenues in the region. In 2021, the company had a profit of 19.5 billion tenge after a loss of 9.7 billion tenge in 2015. Losses were mainly associated with a decrease in prices and demand for products. In addition, during the year, part of ERG's loans were transferred to SSGPO, which resulted in additional financing costs.

98.16% of the company's shares belong to the ERG group.

*estimated data