The BoD of MRSK North Caucasus has recommended paying out RUB 2.8586 per share as FY12 dividends. The record date is set for today, May 14, 2013. The BoD’s recommendations imply a 25% dividend payout ratio, which is in line with the recent governmental guidance. Nevertheless, we see the situation as dubious since the company lacks financing and is going to allocate such a high share of its profit to dividends.

The BoD of Lenenergo has recommended to pay out RUB 0.16 per common and RUB 1.32 per pref as FY12 dividends. The record date to participate in the AGM and to be entitled to receive dividends was May 6. The dividends for prefs were expected since the company allocates 10% of annual NI under RAS to this type of stock according to its charter. Regarding dividends for commons, we note that Lenenergo has not allocated any dividends for common shares since 2004, we see this as positive for the name since it may resume paying dividends. Nevertheless, the investment appeal of the common shares is restricted by the unceasing additional share price placements.

On Friday, the CFO of the Moscow United Electricity Grid Company stated that the company intended to allocate RUB 1.25 bn as FY12 dividend payments. It implies RUB 0.025 per share, which is equal to 2011 levels. The BoD of the company is going to give a dividend recommendation on the meeting of April 30, 2012. If approved, Moscow United Electricity Grid Company will pay out dividends for the fourth straight year.

On Friday, April the 26th, Alrosa reported 2012 IFRS results. Revenue is up 9.5% YoY, and up 67.5% QoQ. EBITDA decreased by 5.0% YoY (up 7.8% QoQ). EBITDA margin shrank from 47.4% in 2011 to 41.1% in 2012. We believe that the decrease in profitability this year came as a surprise for the market. On the other hand, we note that the company’s diamond business segment was doing well, and to a large extent the decrease in EBITDA may be attributed to one-off spendings. Moreover, the company provided very favorable guidance for the diamond market in 2013 (expecting a 10% YoY price growth for gem stones), which is good news. In our view, the privatization deal still remains a major driver for the stock, however it is still unclear how soon GS will be able to provide its valuation range. We also note that earlier Alrosa’s Supervisory Board recommended the AGM to approve 2012 dividend in the amount of RUB 1.11 per share which corresponds to 3.4% yield based on the current price levels.

Orgenergogaz, one of the cheapest names among Gazprom’s service subsidiaries, may pay out RUB 1.51 per share as dividends for 2012, which implies a 2% dividend yield. The record date is today.

According to today’s announcement, the BoD of TGK-1 has recommended to pay out RUB 0.000121805 per share for 2012. Given that for 2011 TGK-1 paid out 0.000048741 per share, if approved by shareholders, the dividend payments are to be increased by 2.5x. We note that the company is going to increase dividend payments despite an 11% y-o-y drop in NI. We note that dividend payments are becoming a more important issue for investors in Russian power utilities, so we believe that an increase in the payment size will be positively perceived by the market.

The BoD of Krasnoyarskenergosbyt recommended allocating the entire NI for 2012 (RUB 447 mn) to dividends. If approved by the shareholders at the AGM of May 31, 2013 the company is to pay out 0.584 per share (common and pref). The record date to participate in the AGM and to be entitled to receive dividends was April 16, 2013.