Russian state-controlled gas producer OAO Gazprom
said Tuesday it would more than double dividend payments this year, in a sign
that the government is seeking more cash from state companies to fill a budget
deficit.
Gazprom--the
world's biggest producer of natural
gas--said its board will recommend a total dividend payout of 198.62
billion
rubles ($6.19 billion) or RUB8.39 per share. The company paid RUB91
billion in
dividends to shareholders in 2010.
Gazprom
along with other state companies has been
criticized for poor corporate governance and low dividend payments
despite
rising profits. The news comes after a person within Gazprom
told Dow Jones Newswires that dividends
would be increased to around RUB200 billion in each of the coming three
years.
Gazprom's
shares rose 2.4% on the news and were
trading 1.5% higher at 168.77 each at 1246 GMT in Moscow.
The dividend increase is primarily a result of the Russian government seeking
more cash from the shares it owns in the country's biggest companies in order
to balance the federal budget, analysts say. Russia's biggest lender OAO Sberbank
recently boosted the level of dividend payouts.
"This shows the government's need for cash, rather than any change in
corporate governance," said Alfa Bank analyst Pavel Sorokin. The
government has already raised the tax burden for Gazprom
to a level where further increases would
hurt the company's investment plans, he added.
"Today's announcement is very positive," said Pavel Kushnir, analyst
at Deutsche Bank in Moscow. "But I don't think they are increasing
dividends because they want minority shareholders to be happy."
Gazprom
will see record profits this year, but may
not be able to sustain the high payout to shareholders as profits are
likely to
fall in the coming year, said Kushnir.
Gazprom's
board also approved capital spending at
RUB709.60 billion in 2012, which is 40% lower than the latest guidance
for this
year at 1.187 trillion rubles. However, analysts said that number is
likely to
be revised upwards, as the company usually adjusts during the year. In
September, Gazprom
said it would boost 2011 capital expenditure by 58% from its previous
guidance.