Rosneft shares are among the most attractive investment opportunities in the Russian stock market. 10.75% of its shares are free float, including 6.6% in the form of Global Depositary Receipts (GDR) traded on the London Stock Exchange (LSE). The Company enjoys a diversified investor base of over 700 institutional investors.
International institutional shareholders of the Company are based in major business and financial hubs, such as New York, Boston, Los Angeles, London, Frankfurt, Stockholm, Hong Kong, Singapore, and Tokyo. For ten years since its IPO, Rosneft shares have been steadily growing in value and outperforming their competitors and the MICEX index. Between 19 July 2006 and 30 December 2017, Rosneft share prices on the Moscow Exchange grew by 43%. As at late 2017, the Company’s capitalization was RUB 3.09 trln.
In 2014–2017, Rosneft’s total shareholder return (TSR) was 64.1%, i.e. 9.3 percentage points higher than the average for its Russian peers. Relations with the Company’s investors, both existing, and potential, are maintained by the Chairman of the Management Board of Rosneft, heads of businesses, First Vice President, and the Investor Relations Department. In 2017, the Company completed an extensive IR program, including a number of strategic speeches by the Chairman of the Management Board at major international investment forums, and over 200 one-on-one and group meetings between the Company’s management and top investment funds. Feedback from investors is reported to Rosneft’s management on a regular basis.
19 investment banks currently provide analytical coverage of the Company. Wood&Co initiated analytical coverage of Rosneft in November 2017. The Chairman of the Management Board of Rosneft and heads of relevant core functions maintain regular communications with the investor community. At such meetings, investors, analysts, and representatives of international rating agencies are updated on strategic trends in the Company’s development, its operations, and financial management directly by the Company’s management. Rosneft holds quarterly conference calls for investors involving heads of economics, finance, and operations and providing detailed coverage of the Company’s performance in the reporting period. Shareholder and investor materials, such as press releases, presentations, Rosneft’s Annual Report and Sustainability Report, and material facts on resolutions of the Company’s Board of Directors are posted on the Company’s official website.
2017 IR Highlights
|Index||Rosneft Share and Depositary Receipt Index Weight as at the End of 2017, %|
|FTSE Russia IOB||4.48|
|SCI Analytical coverage was initiated in November 2017.||18.76|
|Bank||Recommendation, early 2017||Recommendation, late 2017|
|Bank of America Merrill Lynch||Buy||Buy|
|Wood & Company||– Analytical coverage was initiated in November 2017.||Hold|
|VTB Capital||Put on review||Put on review|