Gazprom Neft to boost dividend as output growth leads oil sector

Moscow: Gazprom Neft PJSC, the oil subsidiary of Russia’s biggest natural-gas exporter, is set to boost dividends in the next several years. The question is by how much. The payout may rise to 15 roubles (92 fils, 21 cents) a share in 2019 from about 10.68 roubles this year as upgraded refineries yield more valuable products and organic output growth outstrips other top Russian producers, CFO Alexey Yankevich said. Gazprom Neft, about 96 per cent-owned by Gazprom PJSC, is shielded from government rules on state property agency holdings because it is a subsidiary. Even so, the oil producer insists it won’t fall behind rivals. Capacity exists to push payouts above the policy of 25 per cent of profit, he said at the company headquarters in St Petersburg.