“Rosneft” is named sole attractive investment company in Russia

The largest US investment bank J.P.Morgan included “Rosneft” in the list of most preferred for investment companies in the world in 2022. The company was the only one from Russia, as well as Central and Eastern Europe included in this list.

The compiled J.P. Morgan list also included a number of other oil and gas companies: bp, ExxonMobil, Saudi Aramco, Sinopec, Petrobras, CVE, Marathon

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As an important factor in the attractiveness of “Rosneft” in J.P. Morgan noted the implementation of the project “East Oil.” According to analysts of the American Bank, this project, which started in 2020, has hardly taken into account in the assessment of shares of “Rosneft”. At the same time, “East Oil” has a high IRR, which is estimated at 54 per cent in the baseline scenario.

In general, an important part of the project “East Oil” in the reassessment of the value of “Rosneft” According to many analysts. Bank of America Merril Lynch notes that under favorable market conditions the net present value of the project may exceed the 100-120 billion dollars. Analysts at investment bank Kostanyan Karen and Catherine Smyk has awarded the project the status of “the locomotive of development”, “Rosneft”. At the same time Goldman Sachs dubbed him “a magnet for investors”.

Another important factor of investment attractiveness of “Rosneft” analysts J.P. Morgan called an attractive dividend yield of the company they are expected at the level of 11-13 per cent in 2022 – 2023 years

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“Rosneft” pays dividends twice a year, are aimed at the payment of 50 percent of net profit under IFRS (one of the highest ratios in the industry). In the first half of 2021, “Rosneft” has earned 382 billion rubles of profit. This figure is a record for the company in January-June, and more than 2.5 times higher than the level of net profit earned for the full 2020. Thus, in the first half of “Rosneft” has paid a record 191 billion rubles of interim dividends.

In July 2021, “Rosneft” and the early completion of the payment of dividends for 2020 in the total amount of 73.55 billion rubles.

In general, the investment community appreciates the potential growth of “Rosneft”. BCS predicted value of GDR of the company at $ 12, Bank of America Merril Lynch – 11,2 dollar, Raiffeisen Bank – 11 dollars. Morgan Stanley and Goldman Sachs sees the benchmark value of the shares of “Rosneft” at $ 10.5 per GDR, “Gazprombank” – 10.1 dollars, J.P. Morgan – $ 10

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Earlier, on December 8, the second-largest US investment bank – Bank of America Merril Lynch – added “Rosneft” in its global list of “ideal” objects for investment in 2022 in the region of Eastern Europe, Middle East and Africa. Bank analysts believe that the actions of “Rosneft” have a growth potential of 40 per cent. Also, according to the bank, the Russian company is one of the lowest unit costs of production against the background of the biggest reserves.

/Media reports.