Shares of Tatneft today is a good investment
Quotes of the oil companies always causes the great interest among investors and securities, “Tatneft” have long been considered a very good investment. Stable financial growth over the past years and high dividend allowed the shares of Tatneft to become one of the most profitable securities on the market.
At the same time, it can be noted that the performance of the company have their limits, on the one hand, the company has stable production and good dynamics of profitability of processing, other potential growth close to the upper level and a fairly high valuation multiples. For 2017, the Group “Tatneft” produced 28.9 million tons (206,1 million barrels) of oil and 945,3 million cubic meters of gas. The TANECO complex was produced 8.2 million tons of petroleum products. Net profit of shareholders in 2017 amounted to 123 million rubles 139 107 389 million rubles of net profit of the Group’s shareholders received for 2016.
The main reason, according to which “Tatneft” in 2017, improved their performance, became deeper processing of oil, although the revaluation of the value of resources after the transaction OPEC + also played a role. After the launch of the hydrocracking unit in 2014 processing gives a significant increase in the profitability of the company (nearing 40% before tax). The refining segment has become another source of growth after the commissioning of the first plant “TANECO”.
Unfortunately, a tactical move by the payment of dividends does not allow “Tatneft” to allocate funds to Finance the construction of the second phase of TANECO without borrowing. Last year’s sweep of the Tatar of the financial sector has seriously complicated some of the processes in the country, but the General tone is positive, so next year the company can meet with the higher levels of processing, if the plant is fully operational.
Dividend growth is possible, but unlikely, so investors are set to increase in the market value of securities of the company, both ordinary and privileged. Recommendation of most experts is to take the action “Tatneft” now or in the correction and keep the main part of the portfolio (if you already have, then increase the proportion, depending on its content).
“International financial center”