Lukoil Jumps for Best Rally in 7 Months on Output: Moscow Mover

OAO Lukoil rose for its longest winning streak since August on optimism Russia’s second-biggest oil producer will boost output and dividends.

Lukoil gained 0.2 percent to 2,013 rubles by the close in Moscow, after adding as much as 2.7 percent earlier, the highest intraday level since April 2011 and a fifth day of gains. The number of shares traded was 1.8 million, equivalent to about two times the three-month average.

Lukoil will invest more than $16 billion this year to lift output by 18 percent by the end of 2015, Chief Executive Officer Vagit Alekperov said March 7. Lukoil will consider boosting dividend payout ratios from next year when investment demands ease, Alekperov said. The Moscow-based company will distribute 23 percent of net income in 2012 and is looking to boost shareholder payments to 30 percent of profit in the medium term, he said.

“Lukoil is the most attractive name in the Russian oil and gas sector now,” Alexei Kokin, an analyst at UralSib Financial Corp., said by phone from Moscow. “It showed a great performance, solid cash generation in the fourth quarter, higher than expected dividends.”

Lukoil will rise to 2,552.48 rubles in the next year, according to the average of 21 analyst price targets compiled by Bloomberg.

To contact the reporter on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net

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