Tatneft 2011 Dividend May Reach 7.08 Rubles a Share, Troika Says

OAO Tatneft (TATN), a regional Russian oil producer, may increase dividend payments to 7.08 rubles a share after net income rose to 54.9 billion rubles ($1.89 billion) last year, Troika Dialog said.

The payout has been 30 percent of net income under Russian accounting standards for the past five years at the insistence of the Tatarstan region’s government, a “key” shareholder in the Almetyevsk-based oil producer, Troika analysts Alex Fak, Oleg Maximov and Valery Nesterov wrote today in a note.

The dividend would imply a yield of 6.8 percent on preferred shares and 3.5 percent on common shares, Troika said.

Profit rose 45 percent from the previous year, the company said in a statement on its website yesterday. Local standards are not a good indicator of net income under U.S. generally accepted accounting principles, the Troika analysts said.

Bloomberg analysts forecast dividends of 7.50 rubles a share for the year, compared with 5.02 rubles for 2010.

To contact the reporter on this story: Stephen Bierman in Moscow at sbierman1@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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