Investor’s notes. Bashneft rounds up some friends

Over the past two months, the price of Bashneft’s shares increased by over 30 %, and has exceeded the maximum of many years. The interest of investors is justified: the company’s management has successfully provided a steady stream of positive news. It’s likely that Bashneft prepares to place its shares at the London Stock Exchange.

A pleasant surprise

Bashneft’s shareholder received their most desired gift in the form of unexpectedly  high dividends on October 29th. The Board of Directors recommended to pay dividends for the first 9 months of 2013 in the amount of 199 rubles per 1 ordinary and 1 preferred share. When this new was published, preferred shares of Bashneft grew to 1 500 rubles. The dividend yield on these securities is 13.2 % now that is significantly more than the average market dividend yield and interest rates on deposits in banks. Closure of the shareholders register under the dividend payment will take place on November 5. It is planned to spend a part of the company’s undistributed profit for previous years in the amount of about 37 billion roubles and a part of the net profit for the first 9 months of this year in the amount of about 8 billion rubles. This will give Bashneft ability to pay record dividends in its history. Such generous gesture ensured the attention of investors to other companies with large accumulated undistributed profit. For example, Surgutneftegaz saved about 40 rubles per share with the current value of the preferred shares on the market at 24 rubles.