Rosneft’s Sechin Sees Dividends Rise on TNK-BP Valuation Gain

OAO Rosneft, Russia’s biggest oil producer, is set to boost dividends on 2013 profit after recognizing a higher value for the TNK-BP venture than the $55 billion it paid.

Deloitte estimated a fair value for TNK-BP, the venture set up by BP Plc (BP/) and a group of billionaires a decade ago, that is 167 billion rubles ($5.2 billion) higher than the acquisition price, Chief Executive Officer Igor Sechin said today during a panel led by Prime Minister Dmitry Medvedev at an investor conference in Sochi, Russia.

“This difference will initially be shown in the company’s nine-month results,” Sechin said. “We expect a respective increase in dividends for our shareholders in accordance with dividend policy.”

President Vladimir Putin’s government, trying to lure investors to counter capital outflows and the cheapest equities among emerging markets, is considering increasing the dividend payout for state companies to 35 percent of net income. In November, the government ordered state companies to pay no less than 25 percent.

Rosneft can “easily pay more” if told to do so, Sechin said Sept. 14. In June, Rosneft approved a payment of 85.3 billion rubles, or about 25 percent of 2012 profit under International Financial Reporting Standards.

The TNK-BP deal closed in March, Russia’s biggest acquisition.

To contact the reporters on this story: Stephen Bierman in Moscow at sbierman1@bloomberg.net; Olga Tanas in Moscow at otanas@bloomberg.net

To contact the editor responsible for this story: Torrey Clark at tclark8@bloomberg.net

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