Gazprom dividends: forecast, payments by years

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-17 18:37

Gazprom occupies a leading position in Russia's resource-based economy. In 2017 alone, the parent company earned 100.3 billion rubles. Every investor wants to take a bite out of this pie. The company has consistently paid dividends throughout its history, and the volatility of the asset (the difference between the maximum and minimum value) reaches 20-30% throughout the year.

How does Gazprom attract investors so much?

The Russian gas giant is actually a monopoly on the domestic market. At the same time, the company takes 43rd place on the world stage, according to the Forbes Global 2000 rating for 2018. Moreover, in the industry, the company consistently holds the second place in the world in terms of gas produced, second only to Saudi Aramco from Saudi Arabia.

In terms of natural gas reserves, the company is significantly ahead of all competitors. According to experts, they amount to 36 trillion cubic meters. In addition, Gazprom owns the world's largest natural gas transmission system.

The company successfully supplies "blue fuel" domestically and abroad. Despite developments in the field of solar energy, the demand for conventional energy is still high and stable.

The world's natural gas reserves are limited. This opens up broad prospects for Gazprom's further development. In the future, the company may become a monopoly not only in Russia, but also in the world.

This explains why Gazprom shares are popular. With a par value of 5 rubles, shares on the exchange are currently trading at around 140 rubles apiece.

Back in 2016, the company's profit was 411.4 billion rubles. In 2017, it sank sharply - almost 4 times. However, Gazprom is still interesting to investors. In times of crisis, the oil and gas industry is still a stable and reliable haven for investors.

Analysis of payments on Gazprom shares

According to the Charter of the company, from 17.5 to 35% of profits are directed to the payment of dividends. But only if reserves are formed. Otherwise - 10% under RAS. This policy was approved by the company in 2010. Prior to this, investors could only count on 30% of the company's net income.

Statistics show that Gazprom is trying not to reduce dividends below the level already achieved by the company. In practice, this does not always work out. As can be seen from the table below, the company paid the largest dividends in 2011 - 8.97 rubles per share. And already onthe following year, the payout was cut by almost half and still has not reached a new peak.

Gazprom dividends by years

Year	Volume of paid dividends per share, rubles
1994	0, 02
1995	0, 02
1996	0, 02
1997	0, 03
1998	–
1999	0, 1
2000	0, 3
2001	0, 44
2002	0, 4
2003	0, 69
2004	1, 19
2005	1, 5
2006	2, 54
2007	2, 66
2008	0, 36
2009	2, 39
2010	3, 85
2011	8, 97
2012	5, 99
2013	7, 2
2014	7, 2
2015	7, 89
2016	8, 0397

Did not pay dividends only once in the history of the company - in 1998, during the default in the country.

A general meeting of shareholders has been scheduled for June 25, 2018, where the issue of paying dividends for 2017 will be decided. The Board of Directors proposed to pay 8.04 rubles per share. And this is despite the fact that the company's profit has dipped significantly.

To date, 23,673,512,900 shares have been issued. Accordingly, 190.3 billion rubles will be allocated for the payment of dividends.

This practice makes the calculation of dividends predictable and increases investor confidence.

Nevertheless, dividends should by no means be considered as the main income. Even the income on a bank deposit will be higher, though without taking into account inflation. It's no secret that its level is actually much higher than the official one. Everyone feels it on their own wallet.

After all, the profit from investments in shares is formed due to the growth of market value. However, Gazprom's dividends are a good, and most importantly, stable bonus.

Where and how to buy: a step-by-step guide for the average investor

Let's imagine a person who decided to become a shareholder of Gazprom. Where to begin? The first thing to do is to open a brokerage account. A broker is an intermediarywho will buy and sell shares on the stock exchange at the direction of the investor.

The main criterion for choosing a broker is the license of the Central Bank. Pay attention also to the cost of services and various commissions. Another key parameter is the analytics provided.

How to open an account with a broker?

Opening an account is easy. This can be done remotely, via the Internet or at the company's office. Documents will be required - the same as for opening a bank account: passport, TIN, insurance certificate. Each company adheres to its own standards in this matter.

What to do next?

Next, you will have to register a personal account, install a special program - a trading terminal, sign an agreement and deposit money for trading on the account. Usually the whole procedure takes 30-60 minutes and is not difficult.

After the contract is signed and the investment account is replenished, you can proceed to transactions. It's simple and intuitive - just select the desired asset in the trading terminal, fill in a few fields and click the "Buy" or "Sell" button.

How to get Gazprom dividends: payment terms

The register of shareholders is closed in June-July. Everyone on this list will automatically receive dividend payments on Gazprom shares. You don't need to take any action to do this. It is enough just to own shares.

Deadline to buy shares -3 days prior to registration closing. Within 25 days after this date, the broker will credit the dividend payment to your account. Moreover, in this case, he acts as a tax agent - the money will be credited to the account minus 13% tax.

For holders of paper shares, it is possible to receive dividends to an account with Gazprombank or to a card of the same bank.

Comparison of a deposit in Sberbank and the purchase of Gazprom shares in 2017

Let's imagine an investor who decided to invest 1,000,000 rubles in January 2017. The first option is a deposit in Sberbank, it would bring him 80,000 rubles of profit by the end of the year. Let's take into account the real inflation rate, which amounted to 13% - the purchasing power of 1,000,000 rubles turned into 870,000 rubles. Thus, the investor lost 50,000 rubles on this investment.

Now let's consider the second option - investment in Gazprom shares. To minimize the impact of the exchange rate difference, shares were bought for 100,000 rubles every month. The table below illustrates this clearly:

Month	Promotion price at the beginning of the month, rubles	Number of shares purchased, pieces
January	152, 5	656
February	152, 5	656
March	145, 0	690
April	132	757
May	128	781
June	127, 5	784
July	120, 0	833
August	121, 0	826
September	118, 0	847
October	120, 0	833
November	125, 0	0
December	132, 5	0
Total:		7 663

As you can see, a total of 7,663 shares were purchased. Having sold them in December 2017 at 132.5 rubles apiece, the investor earned 15,347 rubles. In addition, dividends in the amount of 8.03 rubles per share were paid out in June. Total - 34,721 rubles. If you buy shares with this money, then in December the additional profit would be 36,083 rubles. In total, following this strategy, the investor would have earned 51,430 rubles in 2017.

However, with such high inflation, it would be wrong to take profits at the end of the year. Already at the end of January 2018, the price broke through the level of 152 rubles per share. According to statistics, it was in the first quarter of the year that the share priceGazprom reaches its peak.

Accordingly, during this period, you need to take profits. Then the investor would receive 1,164,776 rubles for 7,663 shares. Let's add to this dividends - 36,083 rubles. Then the income would be 200,859 rubles, which is much more attractive than a bank deposit.

Forecast for 2018-2019

Thanks to the company's dividend policy approved in 2010, it has become much easier to forecast Gazprom's dividends.

Analyzing the statistics for recent years, we can assume that Gazprom will not reduce dividends below 8 rubles per share. This would have a negative impact on the image and investment attractiveness of the company.

However, do not forget that profit in 2017 sank almost 4 times. Moreover, it immediately reached the minimum value over the past 15 years.

At the end of 2018, it should grow slightly. Recall that in 2017, Gazprom had to pay more than $2 billion to Naftogaz of Ukraine in order to enforce the decision of the Stockholm court. The sharp drop in the company's income is partly explained by anti-Russian sanctions.

Therefore, it is unlikely that in 2018-2019 the company's profit will reach the previous high values. Accordingly, it is not worth waiting for an increase in the size of Gazprom's dividend payments. This was stated in an interview with RBC by the head of the company, Alexei Miller.

Most likely, the size of Gazprom's dividends in 2018-2019 will remain at the same level - around8.04–8.05 rubles per share. However, it will continue to grow in the future.

At the current share price, Gazprom's dividends provide a yield of 6-6.5% per annum, which is not very attractive for an investor. And it is impossible to guarantee the growth of the market value in the current economic conditions.

Subsidiaries of Gazprom

In the current situation, analysts advise paying attention not to the parent company, but to Gazprom's subsidiaries. In particular, shareholders recently approved Gazprom Neft's record-breaking dividend of 15 rubles per share. This is 40% more than the previous record - in 2016 the company paid 10.68 rubles per share.

Interestingly, unlike Gazprom, Gazprom Neft increased its net profit by 26% in 2017, earning 253.3 billion rubles.

These figures were achieved thanks to the introduction of a single digital business management platform, new large-scale mining projects, and active modernization of processing assets.

Summarize

Gazprom is one of the world's largest companies. It has broad prospects for further growth and development, so it will always be attractive to investors. As for the payment of dividends, Gazprom is distinguished by enviable stability and constancy in this matter.

The company set a record for dividend payments in 2011. Then the company paid 8.97 rubles per share. AndOnly once in history were dividends not paid to Gazprom shareholders - in 1998.

Today, an investor can count on 6-6.5% per annum, if only dividend income is taken into account. At first glance, this is a little less than a bank deposit. However, consider the real inflation rate, which is 10-13%. Under such conditions, the investor will only lose on the deposit. But high inflation contributes to the growth of the share price.

This is an insurance that allows investors to protect their savings from depreciation. After all, the lower the purchasing power of money, the more expensive tangible assets are. Therefore, investing in the real sector, for example, in Gazprom, is preferable in the current economic conditions.

According to Alexey Miller, the company is going to allocate significant funds to new large-scale projects: the Turkish Stream and Power of Siberia gas pipelines, the development of new fields abroad, the Yamal megaproject and others. Therefore, the prospects for the development of the company do not raise doubts among analysts.