Goldman Sachs Investment Bank revised the target prices for the oil and gas sector of the Russian Federation against the background of improving the forecasts of commodity prices. The target price of Rosneft company was raised by 15 percent to $ 10.5 per GDR. This is stated in the review of the Investbank.
According to Goldman Sachs, the Russian oil and gas sector in 2022 and 2023 will be one of the most profitable in the world with an average yield of the SDP of 15 percent and a medium dividend yield of 11 percent.
In its review, the Bank emphasizes its preferences regarding companies focused on long-term production extensions during the non-infiniteness of the sector, such as Rosneft. This company is allocated by its low operating costs that allow the NC to generate greater free cash flow – according to the results of 2021, the yield of the SDP will be 15 percent (the highest value among Russian oil companies).
In addition, in the case of Rosneft, the Bank draws the attention of investors to the East Oil megaproject, which will increase more than 2 million barrels of the oil equivalent per day of liquid hydrocarbons.
Following the results of 2021, Rosneft dividends will increase in 2021 at 7 times compared with 2020. As a result of 2022, they will grow by another 15 percent. Profit per share, according to the revised forecasts, will be 123 rubles per share at the end of 2022 and 139 rubles per share at the end of 2023 (growth to the previous forecast by 8.5 percent and 24 percent, respectively).