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.