Strong ruble knocked down Surgutneftegaz

In 2016, the company lost 438.6 billion rubles on exchange rate differences. However, it still has more than 2 trillion rubles of deposits in the Russian banks.
As a result of 2016, the net loss of Surgutneftegaz amounted to 62.1 billion rubles. Last year there was a profit of 761.6 billion rubles. The company lost the most on exchange rate differences: 438.6 billion rubles., Follows from the company's statements for the past year.

Operating profit of Surgutneftegaz increased by 6.7% to 260.5 billion rubles, the report says. The company received a financial income of 116.8 billion rubles. And cash and cash equivalents increased by 1.6% to 107.5 billion rubles. Whether the net loss will allow Surgutneftegaz to pay high dividends on preferred and ordinary shares is not clear.

Loss is paper, says Aton analyst Alexander Kornilov. The increase in the value of the ruble against the dollar, he says. Since the end of 2015, the ruble has risen in price from 72.88 rubles. Up to 60.66 rubles. For the dollar, follows from the report of Surgutneftegaz. In 2014 and 2015, when the ruble fell against the dollar, the company received a paper profit - ⁠⁠⁠845.9 billion and 583 billion rubles. Accordingly, recalls Kornilov.

The amount of funds on the company's deposits decreased by 11.6% to 2.2 trillion rubles. Deposits are placed in the largest banks that are tax residents of the Russian Federation, the company said.

Surgutneftegaz notes that currency risk is significant for the company and may have an impact on the financial and operating results of its operations. The group's financial assets are placed in deposit accounts primarily in US dollars. Thus, changes in the ruble exchange rate to foreign currency may worsen the financial performance of Surgutneftegaz, the company acknowledges.

But the paper loss will not have a significant impact on the cost of Surgutneftegaz, believes Kornilov. The company since the beginning of trading has risen in price by 0.34% to 1 trillion rubles. (After the MICEX market, which added 0.36%).

Never in the past 22 years, Surgutneftegaz has received a loss under RAS for the year, and because of the strengthening of the ruble in 2016, the company's loss amounted to 104.8 billion rubles., Follows from its report. For the first half of 2016, when the ruble strengthened to the dollar by 15% to 63.99 rubles., Surgutneftegaz received a loss under RAS in the amount of 142 billion rubles. Thus, for the second half of the year the company earned net profit of 37.2 billion rubles, although the strengthening of the ruble continued (the rate rose to 61.27 rubles.).

Whether the net loss will allow Surgutneftegaz to pay high dividends on preferred and ordinary shares is not clear, said Small Letters director Vitaly Kryukov. The dividend policy of the company provides that payments on preferred shares account for 10% of RAS net profit and are paid by 25% of the authorized capital (share of preferred shares). But if dividends on preferred shares are less than dividends on ordinary shares, then holders of preferred securities receive voting rights. According to the Moscow Stock Exchange, about 73% of the preferred shares of Surgutneftegaz are in free circulation and approximately 25% of common shares. True, the dividend policy of Surgutneftegaz provides that when the issue of dividends is put to the vote, the company is guided by the financial results, external and internal factors of the company, as well as the interests of further development.

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