Surgutneftegas Cash Pile Rises to $32 Billion, VTB Capital Says

OAO Surgutneftegas, the Siberian oil producer headed by President Vladimir Putin’s ally Vladimir Bogdanov, boosted its cash pile to $32.1 billion while dividends may remain little changed, according to VTB Capital.

Net income fell 40 percent to 119.1 billion rubles ($3.8 billion) under Russian accounting standards from the same period last year, Russia’s fourth-largest oil producer said yesterday after the close of business. The drop was largely due to a $1.9 billion foreign exchange loss, VTB Capital said.

Surgut may realize a currency gain in the fourth quarter if oil prices hold at $110 a barrel and the ruble trades at 32.3 to the dollar, VTB Capital said today in a research note. That would allow the company to pay dividends of 7 cents a preferred share on its 2012 income, implying a 9 percent yield, the bank said. That is little changed from last year, according to data compiled by Bloomberg.

“We would highlight that foreign exchange rate volatility remains the key risk factor for Surgutneftegas dividends,” VTB Capital said.

Surgutneftegas increased output 1.1 percent to 1.23 million barrels a day of oil a day in the first nine months of 2012 from a year earlier, almost all in Siberia, according to the Energy Ministry’s CDU TEK data unit. That is about 1.5 percent of the 83.6 million barrels a day produced globally last year, according to BP Plc data.

Shares fell 0.8 percent to 19.66 rubles by 12:24 p.m. in Moscow, reversing gains of as much as 1.1 percent.

The Surgut, Russia-based company may begin publishing financial results to international standards next year.

To contact the reporter on this story: Stephen Bierman in Moscow at

To contact the editor responsible for this story: Will Kennedy at

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