Rosneft shares at the auction on Wednesday, September 15, soared by 5.84% – to a new all-time high of 589.8 rubles per share. This is evidenced by the trading data of the Moscow Exchange.
Rosneft’s securities are among the fastest growing on the Russian stock market. Since March 2020, the price of Rosneft shares has increased by more than 2.3 times, and in the first half of 2021 it has risen by more than 31%.
Rosneft is one of the most reliable and promising companies on the Russian market, said Sergei Suverov, investment strategist at Arikapital Management Company, in an interview with Izvestia. He recalled that since December 2017, when the company’s fundamental strategy until 2022 was approved, the value of its shares has grown by more than 85%. “
“I would also like to remind you that Rosneft’s dividend payout ratio is one of the highest in the industry – 50%. Given the latest results, as well as the fact that the Russian oil company pays dividends twice a year, we can expect that its dividend yield in 2021 will be above 10%. This is a very good indicator that exceeds the market average, ”he stressed.
Expert of the Chamber of Commerce and Industry Dmitry Polokhin, in turn, predicted that in the medium term, the value of the company’s shares could rise by 20-40%.
“Among the important growth factors that investors and analysts point out are: a decrease in debt burden, generation of free cash flow, the world’s lowest unit costs of production, the implementation of the flagship oil project Vostok Oil, which is one of the most promising and environmentally friendly in the industry.” – he added.
On September 1, investment bank JPMorgan raised its target price for Rosneft shares by 14% – from $ 8 to $ 10 per global depositary receipt (GDR). According to the forecast, growth to current quotations is expected by 39%.
On August 13, the company provided financial statements for the first half of 2021. Net profit for this period reached 382 billion rubles.
Rosneft’s Vostok Oil project is currently one of the most promising in the world, as it remains a project with low unit costs of production, with a carbon footprint 75% lower than other major new oil projects in the world. Its resource base is over 6 billion tons of premium low-sulfur oil, which has a low sulfur content of 0.01–0.04%. Goldman Sachs has already called it an “investor magnet.”