Russian state blocked?
Gazprom does not pay dividends: the stock falls
Gazprom’s board of directors promises a record dividend. But now the shareholders don’t even get anything: at the general meeting, the owners pick up the plan. The number of dissenting votes shows a striking parallel with the Russian state. The stock collapses.
Russian energy giant Gazprom has surprisingly paid no dividends in the past year and the stock market has collapsed as a result. “The shareholders have decided that in the current situation there is no point in paying dividends on the result for 2021,” Gazprom vice president Famil Sadygow said via the state-owned company’s Telegram channel. For Gazprom, the implementation of the investment program is a priority, with the connection of the Russian regions to the gas network and the increase in the government’s tax demands.
The group does not serve its shareholders for the first time since 1998. Gazprom’s board of directors had already announced a record dividend of 52.53 rubles per share (currently equivalent to around one euro) in view of the high profit of the year. previous one. However, this proposal for the distribution of profits was rejected by the owners at the general meeting. The number of dissenting votes roughly corresponds to the number of shares the Russian state holds in the group. The bonuses for the Board of Directors, on the other hand, were approved with approximately the same number of votes.
In 2021 Gazprom made a record profit of 2.09 trillion rubles (about 27.5 billion euros) thanks to the sharp increase in oil and gas prices. The group announced that neither the plans of the G7 countries to limit gas prices nor the lower gas deliveries to Europe would reduce revenue and tax payments.
Investors are shocked
Small shareholders reacted to the unexpected cancellation of the dividend with substantial sales. The stake lost more than 30 percent in value in a very short time. The dividend was one of the most important factors in the stock’s attractiveness, she said. “The waiver of dividend payments for 2021 not only deprives investors of the ability to request payments for 2021, but also creates risks for future dividend payments,” which is a very negative factor, the bank commented. Russian business BKS.
Gazprom’s decision comes after the G7 announced in recent days that it would review possible price caps for Russian oil and gas in the wake of the Russian attack on Ukraine. This was intended to limit the Russian government’s ability to finance its invasion of Ukraine. Russia therefore threatened to change gas supply contracts.