Russia Monitor is a review of the most important events related to Russian internal and external security, as well as its foreign policies.
Date: 31 May 2022 Author: Grzegorz Kuczyński
Gazprom’s Record Earnings Mean High Dividends
Russian gas giant Gazprom said on May 26 its board was recommending a dividend of 52.53 roubles per share on its 2021 results. The company added an annual general meeting of shareholders is due to approve the dividend on June 30. The 2021 gas crisis was beneficial for the Russian gas giant and so is the Russian invasion of Ukraine. Gas prices are still high while most EU countries still buy Russian-sourced gas even in forced to pay in roubles.
Gazprom board recommended a record-high dividend of 52.53 roubles per share on its 2021 results. The company added an annual general meeting of shareholders is due to approve the dividend on June 30. This is a record high result for both Gazprom and all Russian state-run businesses. The energy firm said the total payout will amount to 1.244 trillion roubles for 2021, or 50 percent of adjusted group net income last year. In 2018, Gazprom revised its earlier dividend proposal to a record 16.61 roubles per share. In 2020, the company’s management board proposed paying 12.55 roubles per share. Dividends for 2021 may therefore soar four-fold as Gazprom notched its best-ever financial result. Last year, the company net profit stood at 2.093 trillion roubles. As a result, record dividends were expected. Last December, Gazprom’s Deputy CEO Famil Sadygov told journalists free cash flow is seen above 1 trillion roubles for 2021. In Q4 2021, Gazprom could use its net profit to finance the $10 billion Nord Stream 2 gas pipeline. Earlier, the board of Gazprom Neft, a Gazprom subsidiary, recommended paying a dividend of 16 roubles per share in Q4 while the total dividend for 2021––if to include those already paid for the first nine months––will stand at 56 roubles, some 3.7 times more than what was paid to shareholders for 2020.
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