Lukoil Maintains Dividend Growth Even After Crude’s Plunge

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OAO Lukoil’s board recommended a final dividend of 94 rubles a share for 2014, Russia’s second largest oil producer said in a regulatory filing.

Added to an interim dividend of 60 rubles, Lukoil’s total payout from last year’s profit is 154 rubles a share, compared with 110 rubles the previous year, according to data compiled by Bloomberg.

“It was a nice surprise for me; I expected around 70 rubles,” Alexei Kokin, an oil and gas analyst Uralsib, said by telephone from Moscow.

Lukoil is raising dividends after crude prices fell almost 50 percent from last year’s peak. The Moscow-based producer has cut spending for this year in response to the decline in oil, trimming expenditures on older Siberian wells and some international projects.

Lukoil rose as much as 0.7 percent, erasing losses of as much as 0.9 percent, and traded 0.4 percent higher at 2,673 rubles at 1:32 p.m. in Moscow.

The board proposed July 14 as the record date for the dividend.

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