Bloomberg News

Gazprom Jumps in Moscow on $6.5 Billion-a-Year Dividend Report

December 01, 2011

Dec. 1 (Bloomberg) -- OAO Gazprom, Russia’s natural-gas export monopoly, jumped to the highest level in two weeks on a report it may set aside as much as 200 billion rubles ($6.5 billion) a year for dividends through 2014.

Gazprom climbed as much as 5.1 percent in Moscow and traded up 4 percent at 182.44 rubles at 5:40 p.m., heading for the biggest gain in a month.

The gas producer is budgeting about 200 billion rubles a year for dividends in 2012 through 2014, Interfax reported, citing an unidentified person familiar with the plan. The Moscow-based company also may trim planned investments next year by 33 percent to 800 billion rubles, the news service said.

Gazprom spokesman Sergei Kupriyanov wasn’t immediately available to comment.

“It’s very good, positive news for Gazprom shareholders,” Lev Snykov, a partner at Greenwich Capital in Moscow, said by phone. “That means a nearly 5 percent yield, which puts them on par with the best global companies.”

Gazprom paid a record dividend of 3.85 rubles a share for 2010. The company’s dividend yield was about 2.1 percent, compared with an average of 4.4 percent for the industry, according to data compiled by Bloomberg.

--With assistance from Stephen Bierman in Moscow. Editors: Torrey Clark, John Viljoen

-0- Dec/01/2011 13:22 GMT

-0- Dec/01/2011 13:41 GMT

To contact the reporter on this story: Anna Shiryaevskaya in Moscow at ashiryaevska@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net -0- Dec/01/2011 12:56 GMT


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