(Updates with closing share price in second paragraph.)
Feb. 22 (Bloomberg) -- OAO Lukoil, Russia’s second-largest oil producer, tumbled the most in more than two months as investors bet a $155 billion investment plan will squeeze dividends.
The shares fell 3.2 percent, their biggest drop since Dec. 9, to 1,778.9 rubles by the close in Moscow.
Lukoil retreated for a second day after Chief Executive Officer Vagit Alekperov said the company plans to spend $155 billion through 2021, Interfax reported yesterday. Lukoil will spend $25 billion upgrading refineries in Russia by 2016 as part of that plan, Interfax said today, citing Alekperov.
“With such capex, we would have difficulty understanding how the company’s promise to raise the dividend payout can be carried out,” Troika Dialog analysts wrote in a research note today. “In the reality of Russian petropolitics such a strategy leads to nothing more than a stock de-rating, in our view.”
Lukoil spokesman Gleb Ovsyannikov could not be reached for comment on his mobile phone today.
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