OREANDA-NEWS. March 31, 2010.  The net income reported will serve as the base to calculate dividends. A moderately high dividend yield is expected on the company’s preferred shares.

On March 30, Surgutneftergaz reported its non-consolidated net income calculated to RAS for 4Q and FY 2009. 4Q net income declined 1.5% q-o-q to RUB 23.43 billion, while FY net income amounted to RUB 113.87 billion, down 20.9% y-o-y.

As of 2002, Surgutneftegaz has released its financials according to RAS only. It would be incorrect, though, to use non-consolidated net income for the financial analysis of the entire group. However, the company discloses annually consolidated financials under RAS in 2Q financial statements.

Like most other Russian O&G companies, Surgutneftegaz Group uses net income of its head company as the basis to calculate dividends. For 2009, the company expects to pay a dividend of 47 kopecks per common share, which corresponds to a dividend yield of 1.6% at the current market price, and dividends of RUB 1.05 per share per pref. A dividend yield on this type of shares is expected to be 6.4%, which is a moderately high figure for first-tier shares in the oil & gas sector.