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Gold/Mining/Energy : LUKOY The largest oil company in the world LukOil unknown -- Ignore unavailable to you. Want to Upgrade?

To: Fred Levine who wrote (862)	8/21/2001 12:43:21 PM
From: Fred Levine	Respond to of 914

19:33 [Tuesday 21st August, 2001] Sibneft's record dividend puzzles many MOSCOW - Last week's announcement by midsize Russian oil producer OAO Sibneft that it would make the country's biggest-ever dividend payout has analysts scratching their heads. Sibneft said it is an attempt to boost interest among potential investors ahead of a further float of the company's shares, thus polishing up Russian companies' generally poor reputation in international markets. But analysts are wondering whether this will leave the company short of exploration funds and needing to raise more debt. "Either Sibneft really is trying to impress investors, and has just gone too far, or the major shareholders want to take cash out of the company," said James Henderson, head of research at Renaissance Capital, in a note to clients. "Although Sibneft will still be able to fund its capital expenditure through raising new debt, higher gearing will obviously leave it more exposed to a decline in oil prices." He's downgraded Sibneft to hold from buy on worries that little money will be left for investment in new oil production. Sibneft is Russia's sixth-biggest oil producer, with output of 15.6 million metric tons in the first seven months of 2001, and its shares are among the country's least liquid oil company stocks. The free float is only 12%, meaning outside holders received just $73 million (79.6 million euros) of the company's $612 million dividend payout promised to shareholders of record as at Aug. 3. Still, the company also promised to pay out 15% of its net income to shareholders "over the long-term earnings cycle." By comparison, OAO Lukoil's dividend ratio for 2000 - the biggest until Sibneft came along - was 11%. If Sibneft keeps its word - and company spokesman Nick Halliwell was adamant it would do so - it will be the most open-handed of Russian oil groups. But not everyone was impressed. The planned dividend ratio "must be received with caution, because if they don't pay anything this year, they can simply point to the longer-term business cycle," said oil and gas analyst Valery Nesterov at Troika Dialog in Moscow. Addressing concerns about debt, Sibneft's Mr. Halliwell said borrowing will rise by about $100 million this year to $450 million. But that forecast doesn't include a $250 million Eurobond planned for October. All in all, Sibneft will borrow twice as much this year - about $700 million - than it borrowed in 2000, even as the company shells out 90% of its 2000 net profit in dividends. "It's our policy to be active on the international market," Mr. Halliwell said. "At a time like this when Brent is $25 a barrel we don't need to borrow ... (but) we're preceded by reputation, which is something we don't much like," he said, referring to Russian companies' poor international reputation. "To overcome that we have to demonstrate in a powerful way to our investors that their company is in the business of looking after their interest fred

To: Fred Levine who wrote (862)	8/21/2001 12:47:20 PM
From: Fred Levine	Read Replies (1) \| Respond to of 914

20:35 [Tuesday 21st August, 2001] Unemployment level drops to 8.3% MOSCOW - The unemployment level dropped from 9.2 to 8.3 per cent in July, 2001, a source in the Russian State Statistics Committee reported to RosBusinessConsulting. 1m unemployed people were registered in various state unemployment institutions last month. This makes 1.4 per cent of the active population of our country. The number of economically active people reached 71m by the end of July 2001, i.e. 50% of the total population of Russia. Russian people are mostly occupied in big and medium businesses. In June 2001, 41.3m people worked there, i.e. 63.5% of all employees. /RosBusinessConsulting/ 17:20 [Tuesday 21st August, 2001] Russia’s GDP expected to grow MOSCOW - Russia’s GDP would grow 3.8 to 4.4% annually in 2001- 2004, said Vladimir Fridlyanov, senior official of the Russian Science and Technology Ministry, at a meeting of the Ministry’s Board yesterday. According to Vladimir Fridlyanov, there are two macroeconomic forecasts for the country. The first one envisions an oil price of $17 per barrel on the world market and a 3.8% GDP annual growth in 2002-2004. The second forecast proceeds from a $22-23 oil price and a 4.4% GDP growth. The inflation rate is expected to lower from 18% in this year to 8-10% in 2004, according to the first scenario, and to 7-9% - to the second one. The first forecast envisions a 5-7% growth in investment annually, and the second – 7.5%. Industrial production will grow by 3.6% annually, according to the fist forecast, and by 4.4% - according to the second. Industrial production growth regarding a number of industries controlled by the Russian Science and Technology Ministry is expected to grow by 103.2 to 104.4% in 2002, 103.1 to 104.3% in 2003, and 104 to 104.5% in 2004, which is 116 to 120% compared with 2000. The largest growth in industrial output in 2004 is expected in chemical and petrochemical industries, 131.7% compared with 2000, as well as in engineering and metal-working industries – 130.4%, light industry –119.2%, and wood, woodworking and cellulose industries – 117.5%. Ferrous and non-ferrous metallurgy is forecast to grow by 104.6% and 108.2% respectively by 2004, compared with 2000. Important changes in the structure of Russia’s industries are expected to take place: the share of engineering and metal-working industries will grow dramatically, and the share of energy and export-oriented industries will decrease considerably. At the same time, the share of consumer-oriented industries will grow. /RosBusinessConsulting/ 14:07 fred