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Recommendations for shares of Rosseti ap. Rosseti shares - price chart, dividends, analytics




This year, during the dividend season, I stocked up on shares of state-owned companies. Rosseti occupied a key place in the portfolio of Russian shares. About two weeks ago, subsidiaries of Russian networks began to publish decisions of the Boards of Directors regarding dividends for the year 16. These decisions added nervousness to the market and raised some questions among investors.

Rosseti: has the state deceived everyone?

The Government of the Russian Federation announced that state-owned companies will use 50% of their net profit under IFRS for payments on shares, but before this, a number of items representing “paper income” will be deducted from the profit. At the same time, a separate decision regarding Rosseti has not yet been made, but decisions have already been made by the management of the enterprises included in the holding.

The first to appear were messages about dividends from IDGC of the Urals and IDGC of Center and Volga Region. Quotes of IDGC of Urals fell by 8% on news of payments giving approximately 5% yield. Quotes of MRSK CP fell by 14% on news of payments giving approximately 6.5% yield.

Investors did not expect such figures, but what puzzled them most was the lack of understanding of how such figures appeared. 43% PE according to IFRS, 37% RAS, 53% IFRS, 42% RAS - this is an approximate breakdown of the volume of payments in the subsidiaries of Russian networks.

Next were IDGC of Center, which recommended surprisingly good dividends, and MOESK, which recommended 4% on paper. MOESK fell in price by 8.5%. The center showed a positive result. I just hold the papers of the Center - this was the first Board of Directors concerning.

On Friday, the decision of the Board of Directors of PJSC TRK was published. I held the preferred securities of TRC for a long time, confident in the 10% emergency rate for dividends on them. The company recommends approve 5% state of emergency, despite the charter of the enterprise. I didn’t investigate whether it was legal or not and sold the papier with a slight minus.

Lenenergo, FSK, IDGC of Volga and others.

Regarding Lenenergo, a few days ago the Moscow Exchange published important news. The exchange reported a 5-fold increase in the number of ordinary shares of the company. It turned out that in 2015 there was an additional issue, but only now the number of shares has been officially increased. I don’t understand why this happened.

I kept ordinary securities in my portfolio, but immediately sold them because I was calculating the dividend yield on the old number of shares. The true number of securities, unfortunately, was not listed on those sites where I look at information on issuers - maybe no one there knew?

Lenenergo Pref is currently the main trading card on the MICEX. What will happen to the quotes if tomorrow the divas do not suit the shareholders? What if from a state of emergency of 7.5 billion, 5.9 billion in profits from technical connection are subtracted, and 10% is deducted from the remaining amount and given to shareholders? They did this with the shopping mall. It will be fun.

FSK has not yet published the management's decision, although the Council has already passed. It’s the same in Rosseti themselves – the intrigue remains. I currently keep FSK and Rosseti in my portfolio. Lenenergo partially sold (a new word in my) - maybe in vain - we'll see tomorrow.

Playing games with the state is a risky business. The Rosseti dividend lottery in 2017 is proof of this. Until now, I have not heard that you can pay less than what is stated in the document that the company accepted for itself and its owners, but this happened. Maybe I don’t know something – this could very well be the case. Think with your own head and be afraid of losing your money.

Russian networks (JSC Rosseti)

A holding management company operating in the electric power sector of the Russian Federation, owning and managing its subsidiaries and dependent companies - Interregional Distribution Grid Companies (IDGC), research and design institutes, construction organizations.

The branch network of JSC Rosseti includes more than 100 branches on the territory of 69 constituent entities of the Russian Federation. JSC Rosseti (the former name of JSC IDGC Holding) was created on October 26, 2007, as a result of reorganization in the form of separation from JSC RAO UES of Russia. This happened by decision of the general meeting of shareholders of RAO UES of Russia OJSC as part of the implementation of the goal outlined in the concept of the strategy of RAO UES of Russia OJSC “5+5” to separate the company. The company was transferred shares of all interregional distribution grid companies. Formally, the authorized capital was formed at the expense of additional capital and retained earnings of previous years of RAO UES of Russia and amounted to 43,116,903,368 rubles. The final process of reorganization of OAO RAO UES of Russia was completed on June 30, 2008. There are 161,078,853,310 ordinary and 2,075,149,384 preferred shares of JSC Rosseti in circulation, with a par value of 1 ruble each.

There are the most unprecedented rumors that can be thought of today about Rosseti OJSC, which makes the analysis of these shares even more interesting. Who declares that the period of payment of dividends on preferred shares has ended and now the company will constantly write off its income as losses from the revaluation of assets, who declare that payments will now be made according to IFRS equally on , for this reason the sale was carried out for several months . In general, the situation is quite interesting, but let's try to understand it. First, let's analyze the company.

Fundamental industry analysis

Fundamental analysis of the industry and the economy as a whole, i.e. the field of activity in which JSC Rosseti operates shows that this company belongs to the subsidized economic sector of Russia. Those. Government subsidies (assistance, support) are allocated to normalize the company’s activities. In this regard, we understand that it is not worth counting on excess profits in this economic area of ​​activity, as well as high progressive increases in the company’s income in the near future. But as a sector characterized by stability of energy consumption by both the population and production, and therefore stability of cash flows, it has its positive side. It is also necessary to take into account the climatic conditions in which Russia is located and the mandatory need to consume significant energy resources. If we consider Rosseti OJSC as a company in this field of activity, we see that it simply has no competitors in Russia. In this regard, as well as the fact that this company, as a separate economic unit, cannot suffer from sanctions imposed by the West, Rosseti OJSC can rightly be considered a fairly attractive asset on the Russian stock market. But since this company is state-owned and we cannot make a profit from its field of activity from the rapid development and increase in the value of the asset body, then it is worth considering it only from the perspective of possible dividend yield.

Analysis of financial statements

Analyzing the financial statements of JSC Rosseti is not a rewarding task, because... Due to the development and changes made to the structure of the company, it makes no sense to analyze it based on reports of several years. In this regard, I will analyze the report of the last two years. Capital investments in the company grew steadily and exceeded cash flow from operations. The company also has negative free cash flow, but the company has estimated cash flow and is therefore able to pay dividends. The question that remains is which shares should they be paid for and what methodology should be used to calculate these payments, and the most important question is whether to pay them at all. Let's calculate dividend payments for all shares for 2013, taking into account the absence of write-offs of income for revaluation losses. If we approach this calculation, then the amount of dividends for each share, including and, is 0.0067 rubles per share. Thus, if we expect a ten percent return on shares, then we need to purchase these shares for 0.065 rubles. Well, this is just our estimated calculation, but in reality, with such low dividend opportunities, in accordance with the charter, all payments are made only on preferred shares.

The company has a very interesting system for calculating dividend payments on preferred shares:

Shareholders who own preferred shares are entitled to receive an annual fixed dividend. The total amount paid as a dividend on each preferred share is set at 10 (ten) percent of the Company's net profit at the end of the financial year, divided by the number of shares that constitute 25 (twenty-five) percent of the Company's authorized capital. Moreover, if the amount of dividends paid by the Company on each ordinary share in a certain year exceeds the amount to be paid as dividends on each preferred share, the amount of the dividend paid on the latter must be increased to the amount of the dividend paid on ordinary shares.

Analysis of Rosseti shares by analogy

It is also difficult to make an analogy for the company OJSC Rosseti, due to the virtual absence of analogues of this company, so we will make an internal assessment for two years. For 2013, the book value of the entire company amounted to 929,192 million rubles, which is 5.85 rubles per share at book value. For the first quarter of 2014, this amount is already 1,015,115 million rubles, i.e. The book value of the share is 6.36 rubles, with the market price of the share being 0.525 rubles. This discrepancy, more than ten times, is primarily caused by significant resources on the balance sheet of the enterprise and the low quality of their use, either due to excess resources or ineffective use. Also, the significant difference in book value and share price is influenced by the obvious oversold shares on the market, due to the lack of dividend payments on them over the last year. Let's now look at the P/E ratio (share price/earnings), which in 2013 was negative due to the write-off of losses from the revaluation of assets from profit. In the first half of 2014, taking into account the planned profit for the year, this ratio is already 1.82. The global industry average is around 5-8. A fairly good indicator for purchasing shares of this company.

Possible risks of owning shares of JSC Rosseti

I would say that the main risk of owning shares of Rosseti OJSC is the lack of dividend payments on them. Thus, I advise you to reduce these risks by purchasing only Rosseti OJSC, because payment of dividends on them is guaranteed by the current charter, for contributions to which it is necessary to have 75% of the votes of the owners of preferred shares. The second risk can be called repeated write-offs of losses from the revaluation of assets, but this risk is minimal this year, because repeating the same situation with paper revaluation and a decrease in net profit from year to year is not logical. Also considered a risk is the obligation of Rosseti OJSC to invest significant amounts of money in the energy structure of Crimea, which may affect the company’s cash flows. Many analysts also point out among the risks for the company, the introduction of calculation of dividend yield in companies according to IFRS, with the distribution of profits among shares in an equal manner, as a result of which income on preferred shares may decrease significantly. In this case, I can also classify this risk as insignificant, indicating the need for 75% of the votes of the owners of preferred shares to make this decision.

Advantages of purchasing and owning shares of JSC Rosseti

The main advantage of owning shares of OJSC Rosseti, and as I already wrote, it is better to own preferred shares, is the actual insurance of your investments in long-term projects associated with stable income and actual constant forced demand in a given area of ​​consumption, constant forced consumption of electricity. The second advantage is the acquisition of shares at a reduced price, expressed in a significant discrepancy between the acquisition price and the book value of the asset, taking into account the discount of the acquisition price even to the nominal value of the share in the amount of almost 50%, which also gives an advantage over other debts in case of compensation for losses if possible company bankruptcy. The main advantage is the dividend potential of the preferred shares of JSC Rosseti, which today can be estimated at no less than 10% per annum of the current share price.

The Rosseti company has a rather complex procedure for calculating the amount of dividends. The basis for payment is net income excluding write-offs due to depreciation of material investments. Next, the total amount that is allocated for dividends is calculated. It is equal to the larger of two sizes: 5 percent of net income or part of the net income that Rosseti’s subsidiaries allocated for payments.

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About company

The Rosseti Shareholders Society is an operator of energy networks in the Russian Federation - one of the largest electric grid companies on the planet. The organization manages 2.30 million km of power lines, 490 thousand substations with a capacity of more than 761 GVA. In 2015, the supply of electrical energy to consumers was 720.5 billion kW per hour.

Rosset contains 37 subsidiaries and dependent companies, including 14 interregional ones and a backbone network organization. Shares of the Open Joint Stock Company "Russian Networks" are owned by more than 320 thousand participants.

The inspecting shareholder is the country represented by the government agency. property of Russia, owning 87.9% of the initial capital.

Rosseti is a leading company on the Russian market in introducing new technologies in the main and distribution power grids. The organization pays significant attention to issues of energy conservation, efficiency, international cooperation, environmental protection and labor protection.

Latest news and dividend forecast for Rosseti

Rosseti is asked to take into account the request for payment of dividends from state organizations in its tariff policy. Rosseti General Director O. Budargin told reporters about this at the international energy forum “Rugrids-Electro”. A position on these issues is currently being prepared.

The most significant thing in this matter is the presence of a long-term tariff policy, taking into account which the organization is ready to fulfill payment requests. The company's board is ready to carry out such work, but this request is not taken into account in the tariff policy.

And all these payments are not taken into account in the implementation of tariff policy. The Ministry of Energy may come up with an initiative to reduce payments for some government organizations.

According to him, this will be a difficult decision for the list of energy organizations (fixing the standard of payment by state organizations for payments of at least half of net income).

The organization does not provide a forecast of net income under IFRS for the year.

Rosseti is also considering paying dividends for the 1st quarter of 2018.

According to the resolution of the Russian government, based on the results of 2015, joint-stock companies with state. with participation they pay as dividends no less than 50% of net income according to RAS or IFRS. For now, this rule applies only to payments based on the results of 2015.

At the same time, the Russian Ministry of Finance proposes to fix this norm without deadlines, the Ministry of Economic Development - only until 2019. In 2018, the Ministry of Finance wants to receive a profit from dividends of state organizations in the amount of 339 billion rubles, in 2018 - 296 billion rubles, in 2019 - 263 billion rubles.

Video: Reliability, modernization, efficiency

Dividend policy

Dividend policy is, first of all, the company's policy in the field of income generation, which determines the order in which the organization will pay dividends to shareholders: pay in one payment, or by reinvesting income to generate profit with payment of dividends in a larger amount.

The dividend policy of the Rosseti company is to strictly adhere to the rights of shareholders established by the current laws of Russia, the charter and internal papers of the company and is focused on increasing the attractiveness of the company in the field of investment and increasing its capitalization in the market.

By the decision of the Board of Owners of the Company dated November 18, 2014, the Regulations on the dividend policy of the Rosseti company were prescribed. It is made in accordance with the legislation, the organization’s charter, as well as internal documents.

This Regulation highlights the task of Rosseti's strategy in the process of assigning payment amounts for shares and the circumstances for their payment, taking into account the preservation of equality of interests of the organization and its participants, as well as raising the level of the organization's investments.

The regulation sets out the organization’s main beliefs regarding the payment of dividends, as well as the circumstances and procedure for payment.

General provisions

To calculate dividends, the RAS result is used. The payment per preferred share is set at 10 percent of the true income divided by the number of shares, which equals 25 percent of the initial capital.

The Rosseti organization did not pay dividends for ordinary shares. The last time the organization paid for preferred shares was based on the results of 2012 based on undivided income.

Principles and Goals

The dividend policy of the Rosseti company is focused on ensuring the rights of shareholders and investors, growth of capitalization, the power grid complex and meeting the expectations of shareholders and investors. Achieving an acceptable income for company participants, increasing the flow of dividends, full disclosure of work data in a timely manner, increasing the attractiveness of investments and increasing private deposits.

Basic provisions

The essential principles of the dividend policy are:

  • Ensuring a balance between the rights of the company’s shareholders and the company’s needs for funds to form and perform industry-wide functions assigned to the company in accordance with the Strategy for the formation of a complex of electrical networks.
  • Ensuring clarity of the mechanism for establishing the amount of dividends and their payment.
  • compliance of the Company's practice of accrual and payment of dividends with the laws of Russia and corporate governance standards.
  • Ensuring good dynamics of the size of dividend payments while increasing the company's net income.
  • Availability of data for participants and other interested individuals on the dividend policy.

Conditions and grounds for payment

Conditions and grounds for payment Rosseti intends to recommend dividends, the average price of which is equal to half of the net profit of Rosseti.

Their average value will correspond to 25% of the net profit, which is indicated in the company’s report for the specified time, until the net debt/EBITDA ratio reaches 1.0x or less.

Decision making procedure

The issue of payment of dividends is resolved at a meeting of shareholders in accordance with the requirements of the Russian Law “On Joint-Stock Companies”.

This document establishes the amount of dividend payments, according to the categories and types of shares, the forms and procedure of payment, and the time. The organization offers founders who can receive a share of the organization's income.

Sizing

The amount of dividends is determined by the board of directors on the recommendation of the general director. Shareholders are given the right to submit recommendations to the Board of Directors on the amount of dividends.

For the calculation, the total according to RAS is taken. The payment per preferred share is equal to 10 percent of net income divided by the number of shares, which equals 25 percent of the initial capital.

The issue of paying dividends for the 1st quarter, half a year and nine months after the end of the corresponding period is being resolved. Dividends on preferred shares will amount to 1 rub. per share. The same money is paid for ordinary shares.

List of persons eligible to receive

The list of persons who have the right to pay dividends is determined every year on the day the register of shareholders ends. Even if you bought company shares the day before the end of the register, you have the right to receive Rosseti dividends. And persons who sold their shares will not receive payment data. The end date of the register is determined by law.

Payment procedure and terms

Dividends are paid in the form of money, except in cases where the general meeting of shareholders passes a resolution on payment of dividends other than in cash.

The time for payment of dividends is determined in accordance with Russian legislation. Dividends are paid on any day during the entire appointed time for their payment. Rosseti dividends are paid every quarter.

Informing shareholders

The company informs its participants about the amount of interim payments, the period and procedure for payment using versions that are assigned by the company's charter to notify shareholders about the convening of the next meeting. It is also obliged to notify shareholders about the amount of annual dividends and the mode of their payment.

During meetings, the results of voting and resolutions are likely to be told at the meeting during which the vote was taken or communicated to shareholders after closing by options that are stipulated by the charter for notifying shareholders of the meeting no later than 45 days from the date of signature of the minutes.

Final provisions

The regulation on the payment policy for company participants is subject to change by adoption of a decision by the Board of Directors.

If the main standards of this Regulation violate the requirements of current laws, the general rules and laws of the state are used. Thus, the company must comply with legal regulations when paying dividends.

Economist. More than 15 years of experience in finance. Date of: April 25, 2018. Reading time 5 minutes.

Since 2017, Rosseti has improved its performance indicators and resumed paying dividends after a pause of 3 years. Based on the results of 2017, dividends will not be paid, but from July 10, shareholders can receive a profit for the first quarter of 2018 at the rate of 0.04287 rubles. on preferred shares and 0.011965 rub. on ordinary shares.

PJSC Rosseti is one of the largest companies in the world in the field of electricity supply. It manages 2.3 million km of power lines and almost 500 thousand substations. The group consists of 36 subsidiaries, including IDGC and. It is a company with state participation. Rosseti has a staff of about 215 thousand people who, through their work, provide electricity to millions of Russians in different regions. Currently he is introducing innovative technologies in the power grid complex and introducing new energy saving standards.

When Rosseti pays dividends

The company's shares are listed on the Moscow (MICEX) and London (LSE) stock exchanges under the tickers RSTI, RSTIP and RSTI, respectively.

The company offers investors two types of shares: ordinary and preferred (prefs) with a total amount of just under 200 billion shares. The main owner is the Russian Federation through the Agency for State Management. property, owns 88.04% of securities. The remaining shares are distributed among minority shareholders, some are in free circulation.

Briefly. In the period from 2014 to 2016, Rosseti did not pay dividends due to financial losses. It again began to fulfill its obligations to investors in 2016, paying money based on the results of the 1st quarter of this year.

Over the past few years, the company has demonstrated a steady increase in financial performance.

  1. Revenue increased from RUB 766.8 billion. in 2015 to 948.3 billion rubles. in 2017
  2. Net profit increased from 81.6 billion rubles. in 2015 to 137.1 billion rubles. in 2017

This became possible against the backdrop of several factors, including an increase in the volume of electricity transmission and cost optimization. Improved performance allowed the restoration of dividend payments.

Table 1. Timing and amount of dividend paymentsRosseti in 2017. Source: investfuture.ru

Current yield is 4.9%, DSI is 0.14.

All rules regarding the calculation of dividends are described in Rosseti’s dividend policy. A new version of the document was adopted in 2017; the value of net profit, which will be used to pay income, was changed: now it will be the greater of 50% of profit according to RAS or IFRS.

According to the company's dividend policy, money can be paid to shareholders based on the results of quarters and the reporting year.

Table 2. Terms and amounts of dividend paymentsRosseti in 2018. Source: investfuture.ru

What dividends will Rosseti pay in 2018?

According to Vyacheslav Kravchenko, deputy. Minister of Energy of Russia, the company intends to pay dividends for 2017. The specific amounts are unknown, but an analysis of the situation allows us to draw certain conclusions.

Interesting fact! Based on the results of 2017, Rosseti significantly increased its profit according to IFRS, but suffered a loss according to RAS standards.

Therefore, the Supervisory Board decided to recommend that the Shareholders’ Meeting not accrue or pay out shares based on the results of 2017. At the same time, it was decided to pay dividends for the first quarter of 2018.

Table 3. History of dividend paymentsRosseti 2010-2018Source: official website

Period (year of payment) Amount per 1 share ordinary, rub. Amount per 1 share privileged rub. Total amount of dividends, rub.
2018 0,011965 0,04287 –
2017 0,0062 0,3683 RUB 1.96 billion
2016, 1st quarter 0,0083 0,0745 RUB 1.76 billion
2016 non-payment non-payment –
2015 non-payment non-payment –
2014 non-payment non-payment –
2013 non-payment 0,05 RUB 159.8 million
2012 non-payment 0,07 RUB 139.9 million
2011 non-payment 0,08 RUB 100.1 million
2010 non-payment non-payment –

How to receive dividends and become a shareholder?

Dividend income is paid subject to several conditions, including the presence of net profit and the absence of signs of insolvency of the enterprise. The decision is made according to the following scheme:

  1. The Board of Directors analyzes the results of Rosseti's activities for the reporting period, determines the amount that should be allocated for payments, and calculates the recommended dividend amount.
  2. The General Meeting of Shareholders makes the final decision, guided by the recommendations received.

Important! The General Meeting of Shareholders does not have the right to approve the value of the dividend to be paid above the recommended one.

The decision of this body, in addition to the amount of the dividend in monetary equivalent, must indicate the procedure, payment period and date of closure of the register. On this date, also called the cut-off date, a list of shareholders entitled to receive money is compiled - these individuals will subsequently be paid.

To receive Rosseti dividends in 2018, it is important to purchase securities before the cutoff. According to the forecast, it is expected on July 9; You can get on the register by purchasing the company’s securities in advance, at least 2 business days in advance. In this case, you must become a shareholder no later than July 7.

An individual can buy shares from a brokerage company, a specialized intermediary operating in the stock market. It is recommended to work only with trusted companies that enter into a full-fledged contract and have the appropriate certificates.

The necessary information on the topic of Rosseti dividends can be found on the official website: www.rosseti.ru.

Video. Forecast for the price of Rosseti shares and dividends for 2018:

Higher education. Orenburg State University (specialization: economics and management of heavy engineering enterprises).
April 25, 2018.

PJSC Rosseti is a system-forming natural monopoly of the Russian Federation, which is the operating operator of energy networks in the country. This company is one of the largest power grid corporations in the world. It manages more than 2.3 million km of power lines (including high-voltage ones), almost half a million transformer electrical substations, whose capacity is more than 773 thousand megavoltamperes. Rosseti's shares can fully be called indicators of the dynamics of the country's infrastructural development (about which the top officials of the state talk so much).

Currently, Rosseti is a key enterprise engaged in the innovative development of Russia. This is where the most high-tech developments are implemented, which are focused on the electrical grid complex (and everything connected with it). The company itself determined the directions for intensification. This:

  • increasing the efficiency (efficiency) of network nodes (transformer substations);
  • increasing network capacity;
  • international cooperation with the opening of new communication channels between the domestic energy system and the systems of other countries;
  • increasing staff productivity;
  • environmental protection and labor protection.

Stock price chart

Cost of ordinary shares of Rosseti

Cost of Rosseti preferred shares

The appearance of the interactive chart of Rosseti shares is somewhat reminiscent of a reflection of the unfulfilled hopes of domestic investors regarding the dynamic, technological breakthrough of Russia. The stock price reached its peak in January 2011 at 5.609 rubles per share. And then there followed a period of disappointment, which did not even coincide with the oil trend.

Rosseti share prices reached their 10-year minimum in January 2015 – 0.4129 rubles per share. It should also be noted that there was a local rise in January 2017: the share price rose to 1.2385 rubles. for 1 piece However, most of the time, from mid-2013 (the last pre-crisis period) to the present day, the securities of this system-forming natural monopoly were in the corridor from 41 kopecks to 1 ruble per share (occasionally breaking through upwards). And today the price of Rosseti shares is also in the specified corridor, as can be seen on the online chart.

The securities of PJSC Rosseti are poorly susceptible to technical analysis. So, when choosing the moment of entry, it is strongly recommended to be guided by fundamental factors in conjunction with an analysis of the prevailing economic and political circumstances.

About the company: yesterday, today, tomorrow

The emergence of the corporation in the form in which it is now known to its shareholders dates back to November 22, 2012 (the renaming of OJSC Holding of Interregional Distribution Grid Companies to PJSC Russian Grids took place). However, along with the renaming, transformations began aimed at:

  • to create unified centers of technical responsibility;
  • to coordinate measures to improve the efficiency of investment activities;
  • to develop uniform quality standards.

Fundamental analysis at the moment allows us to judge the success in the development of such a large-scale enterprise. PJSC Rosseti aggregates 36 subsidiaries and dependent companies (including 14 interregional grid giants) in its management structure.

88% of the corporation's securities are aggregated by the state, which makes the corporation advantageous in terms of political weight and influence.

The capacity of electrical networks made it possible to “ship” almost 743 billion kWh of electricity to consumers (and there is a reserve for the future).

Financial indicators also show progress: in 2016, revenue amounted to almost a trillion rubles (904 billion), which is almost 18% higher than in 2015 (official data for 2017 has not yet been published). The profit level came close to 100 billion rubles, which, firstly, is 20.5% more than in the previous period, and secondly, clearly demonstrates the high profitability of the corporation’s activities.

If you analyze Rosseti shares at least according to the indicated indicators, then you can confidently state that they are undervalued. However, there are also external factors and circumstances that also have a strong impact on the value of the corporation in question.

Rosseti securities: types and dynamics

The total number of Rosseti shares is 197,341,865,141 ordinary shares (RSTI), as well as 2,075,149,384 preferred shares (RSTIP). Both have a denomination of 1 ruble and were listed on the exchange on December 3, 2008.

Currently, the dynamics of the price of ordinary shares (JSC), rather, resembles a sideways trend with local fluctuations at the level of 0.85 rubles. This may not adequately correspond to the economic success of the corporation, but, unfortunately, the company's capitalization is reflected in the difficulties of the country's international position. But the cost of preferred shares (AP) is significantly and favorably (almost 2 times) higher than the price level for ordinary shares of Rosseti PJSC (1.62 rubles per share). This was the result of the dividend policy being pursued.

The corporation's securities (both JSC and AP) are listed on the Moscow Exchange (MICEX-RTS). The current capitalization of Rosseti is:

  • for JSC – approximately 167.5 billion rubles (as of the end of April 2018);
  • according to the AP - about 3.4 billion rubles.

In addition, global depositary receipts (GDRs) of JSC Rosseti PJSC are listed on the London Stock Exchange, as well as on the Berlin Stock Exchange - Borse Berlin.

Unlike ADRs (American Depositary Receipts), which are intended to be traded on US markets, GDRs (Global Depositary Receipts) are intended to be traded on European exchanges.

GDRs aggregate 200 ordinary shares of the company. The current price for Rosseti's GDR in Berlin is 1.95 euros per receipt, which, converted to rubles at the current rate, forms a price below 74 kopecks per share (which is less than on the Moscow Exchange). In London, a GDR of 200 securities costs $2.78, which ultimately translates into 85 kopecks per share. Price discrepancies like these provide a great opportunity for arbitrage.

In addition to shares and receipts for them, the Rosseti Corporation issues bonds. 6 tranches have already been issued, all bonds have a coupon accrual of income and a nominal value of 1000 rubles.

Major shareholders and subsidiaries

The largest holders of shares of the management company (authorized capital) of PJSC Rosseti are:

  • Government of the Russian Federation. The state's share in the share capital is 88.89% of the joint-stock company (and 88.04% of the authorized capital equal to 200,903,014,525 rubles).
  • GazpromFinance B.V. Its share in the Authorized Capital is 1.28% (1.29% of the total number of voting shares).
  • Other resident legal entities own a share in the authorized capital in the amount of 2.78%.
  • The share of non-resident legal entities accounts for 3.76% of the capital.
  • The remaining securities are distributed among individuals (both residents and non-residents of the Russian Federation).

In total, Rosseti PJSC has 36 subsidiaries and affiliates. The main value (both from the point of view of capitalization and from the point of view of the activity profile) is represented by 22 interregional, distribution and regional network companies. Here are the five largest:

  • PJSC "Federal Grid Company of the Unified Energy System" - Rosseti's share in the management company of the enterprise is 80.13%;
  • JSC Tyumenenergo – 100%;
  • PJSC Interregional Distribution Grid Company of Volga - 67.97%;
  • PJSC Interregional Distribution Grid Company of the North Caucasus - 92%;
  • PJSC Lenenergo - 67.48%.

The remaining companies, part of the management companies of which belong to PJSC Rosseti, perform construction, research, maintenance and other types of work for the corporation.

Dividends

For a long time, the corporation's dividend policy was characterized by its conservatism. Until 2016, dividends for the corporation's joint stock companies were not consistently paid - all profits were reinvested in core activities. Even under the AP, dividends were paid only in 2011, 2012 and 2013 (based on the results of previous years).

Everything has changed since 2016, when the Government obliged corporations with state participation to pay dividends to shareholders based on the results of their activities. In 2016, Rosseti dividends were paid not just based on the results of the year, but even based on the results of the 1st quarter of 2016. The dynamics here are interesting: at that time the dividends were:

  • for 1 JSC – 0.008 rub.;
  • for 1 AP – 0.075 rub.

But in 2017 the situation changed dramatically:

  • per 1 JSC 0.006 rubles were paid;
  • dividends per 1 preferred share amounted to 0.368 rubles.

This sharply raised the rate of Rosseti's preferred securities by almost 2 times in relation to the joint-stock company. The management of Rosseti declares that it will not refuse dividends (or their payment) either on ordinary or preferred securities in 2018.

Important! The cut-off date (closing of the register before the general meeting of shareholders of PJSC Rosseti) is set every year on the same day - July 19.

How and where can an individual buy Rosseti shares?

A citizen of the Russian Federation or a non-resident can buy or sell shares of Rosseti PJSC on the Moscow Exchange (the joint MICEX-RTS platform). Of course, individuals can buy both shares of Rosseti PJSC and GDRs for these securities only through a professional participant in the securities market - a broker. The transaction can be carried out either through direct placement of an order through specialized specialists of the broker company, or through remote access to the site, which the broker can organize by providing the client with specialized software.

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