Institutional Investor Relations
Rosneft shares are among the most attractive investment instruments in the Russian stock market. The Company has a free float of 11%, including 5.4% in the form of GDRs traded on the London Stock Exchange (LSE). Rosneft enjoys a diversified investor base of around 500 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 over ten years since its IPO, Rosneft shares have been steadily growing in value. Between 19 July 2006 (IPO) and 31 December 2020, Rosneft's share prices on the Moscow Exchange doubled.
Relations with the Company’s investors, both existing and potential, are maintained by the Chairman of the Management Board of Rosneft, First Vice President, heads of businesses, and the Investor Relations Department. In 2020, despite pandemic-related challenges and restrictions, the Company actively engaged with investors, including through a number of Rosneft management's speeches at major international forums. The Company sent representatives to five in-person conferences (in January–March 2020), held over 300 group and one-on-one virtual meetings with representatives of more than 400 funds, and organised about 200 conference calls (including four quarterly disclosures) and seven calls dedicated to the Company's activities.
Feedback from investors is reported to Rosneft’s management on a regular basis.
Currently, 20 investment banks provide analytical coverage of the Company, with 18 of them recommending to buy or hold Rosneft shares/GDRs.
The Chairman of the Management Board of Rosneft and heads of relevant core functions maintain regular communications with the investor community, where 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 top executives. Rosneft holds quarterly conference calls for investors involving heads of economics, finance, and operations who provide 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, as well as material facts on resolutions of the Company’s Board of Directors are posted on the Company’s website.
In 2020, the Company also kept improving its ESG practices and disclosures. In June 2020, Rosneft released an updated public statement on its contribution towards achieving the UN Sustainable Development Goals approved by the Company’s Board of Directors in December 2018. During the reporting year, Rosneft maintained regular communication with investors supporting the global Climate Action 100+ initiative. The Company held around 50 investor calls on ESG matters and an ESG-focused roadshow. Rosneft maintains an ongoing dialogue with key ESG analytical and rating agencies.
Transparency and openness of the Company’s ESG disclosure have gained international recognition. In 2020, Rosneft was once again included in the FTSE4Good Index of companies demonstrating strong ESG practices. Rosneft became the best Russian oil and gas company in the CHRB, Bloomberg and Refinitiv ESG ratings, and improved its position in TPI и MSCI rankings.
2020 IR highlights
|Index||Rosneft share and depositary receipt index weight as at January 2021, %|
|List of the largest institutional equity and GDR investors as at 31 December 2020|| |
|Arrowstreet Capital, LP||3.55%|
|State Street Corp.||2.38%|
|GIC Pte Ltd.||1.94%|
|Pzena Investment Management LLC||1.82%|
|SAFE Investment Co. Ltd.||1.80%|
|Macquarie Group Ltd.||1.77%|
|UBS Group AG||1.45%|
|VanEck Associates Corp.||1.36%|
|APG Asset Management NV||1.17%|
|Legal & General Group plc||1.05%|
|No||Bank||Recommendation, early 2020||Recommendation, late 2020|
|8||Bank of America Merrill Lynch||Hold||Buy|
|9||J. P. Morgan||Hold||Buy|
|10||Wood & Co||Hold||Buy|
|19||Alfa Bank||Under review||Under review|
|20||VTB Capital||Under review||Under review|