Rosneft Overtakes BP in Capitalization

“The Rosneft,” from its London stock exchange statistics, has surpassed the capitalization of British oil firm BP. At Monday’s start of trade, Rosneft was equivalent to 90,6 billion dollars and BP had a  figure of 87,7 billion dollars, Vedomosti writes.

Since the start of the year, the quota Rosneft has increased by about 40% on the London SE  and in the Moscow Exchange.

In his assessment of Bank of America Merrill Lynch, Rosneft is the primary benefactor of an increase in oil prices in Europe, former USSR nations and the Middle East. According to the bank, Rosneft’s equity fair value is $ 9.9, which is approximately 20 percent of the upward potential of present prices.

In September 2021, US investment firm JP Morgan increased Rosneft’s worldwide receipt target price by nearly 14 percent to $10.00. The bank experts say that most of the potential is attributable to the Vostok Oil project, which has not yet been completely represented in the market evaluation of the business. 

According to JP Morgan, it will increase the selling of shares in the project to additional partners (e.g. from India or China). In July, Morgan Stanley, the US investment firm, increased its Rosneft share price prediction by 14% From $9.2 to $10.5 per share.

Rosneft earned a record profit in the first half of 2021: 382 billion roubles, compared with 113 billion rubles a year earlier. Revenues rose by 39.6 percent to 3.9 trillion rubles during the time under the amended agreement OPEC + with increasing oil prices and quantities of production.

EBITDA of 1.02 trillion rubles amounted to June, a rise of 2,1 times over the same month last year. Rosneft’s EBITDA may increase by 80% by the end of 2021, compared to RUB 1.2 trillion by 2020, according to Bloomberg’s prediction.

In a total of 191 billion rubles in a month, or 18.03 rubles per share, the company’s Board of Management proposed paying interim dividends in August.

Rosneft’s record is this level of interim dividends. According to JP Morgan, the strong dividend return also supports the increase in Rosneft’s quota. By the end of 2021 and 2022, bank experts predict it to be 9-12%.