Oil and gas and metallurgical companies were the leaders in terms of dividends in the Russian Federation in 2020

by time news

In terms of dividend payments among public companies in Russia in 2020, the leaders were oil and gas and metallurgical companies, TIme reports with reference to the ITI Capital review. At the same time, the share of the oil and gas sector in the total amount of remuneration to shareholders decreased from 51% to 33%. The share of metallurgical companies also reached 33%, followed by financial companies, whose share increased from 13% to 18% over the year.

The calculations of the investment company ITI Capital are made on the basis of the reports of the 50 largest Russian companies listed on the Moscow Stock Exchange. These companies account for 90% of the total volume of public dividend payments in Russia.

The rating of companies by the amount of dividends in the Russian Federation for 2020 includes:

  • oil and gas sector (33% of the total share of dividends);
  • metals and mining (33%);
  • finance (18%);
  • consumer goods (5%);
  • communications (4%).

According to ITI Capital estimates, 2.6 trillion rubles were paid to shareholders of the top 50 companies on the Moscow Exchange last year. ($ 36 billion) including annual and interim dividends. Over the year, the total amount of remuneration decreased by 19% in ruble terms and by 24% in dollar terms. The largest declines in dividend payments were in the petrochemical sector (-66% compared to 2019), utilities (-56%) and the oil and gas industry (-46%). Payments increased in retail (+ 60%), metallurgy and mining (+ 20%).

The average annual return on shares of Russian issuers for 2020 decreased by 2 percentage points, to 6% in dollar terms, but was still the highest in the world. As ITI Capital predicts, by the end of 2021, the dividend yield of Russian issuers will rise to 7%.

On May 31, First Deputy Prime Minister Andrei Belousov said that against the backdrop of a pandemic in 2020, Russian metallurgical companies increased their revenues “several times” and “pushed” the state by 100 billion rubles. The Kremlin said that in the situation with super-profits of Russian metallurgists, it makes no sense to look for the culprits, because this is “economic life.” Mr. Belousov then explained that the government does not set itself the task of “taking away” additional revenues from metallurgists, but simply wants to meet the parameters of projects that have risen in price due to prices for metal products. The main owner of Severstal, Alexei Mordashov, announced his readiness to pay higher taxes, but called for maintaining common sense and commitment to a market economy.

Whether the market players managed to close the question of super profits, read in the material “Kommersant FM” “Metallurgists agreed on discounts.”


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