Russia's Lukoil eyes Hong Kong float, higher dividends

Lukoil, Russia's No 2 oil producer, is looking to place shares in Hong Kong within the next 12 to 18 months and also plans a significantly higher dividend, Vice President Leonid Fedun said on Tuesday.

Lukoil, where Fedun and the company's chief executive Vagit Alekperov are the largest shareholders, controlling almost a 30 percent combined stake, paid 52 roubles per share on 2009 results, transferring over 44 billion roubles ($1.55 billion) to shareholders.

"Dividends (on 2010 results) will be significantly higher than for the previous year," Fedun told reporters.

In Russia, where oil and gas remain the cornerstones of the economy, energy companies pay out the richest dividends.

Sberbank and VTB, the country's two top lenders, may pay a combined 27 billion roubles in dividends for 2010, less than state-owned oil leader Rosneft alone.

Fedun also said that Lukoil, the country' largest privately owned oil producer, might list its shares in Hong Kong, after Russian President Dmitry Medvedev's recent visit to the city.

"After the President's visit, of course, it will be Hong Kong. It (the preparation for listing) is a long process, which would take at least between a year to a year and a half," said Fedun, who owns around 9 per cent in Lukoil.

A senior Medvedev aide, Arkady Dvorkovich, said on Sunday four or five firms were eyeing a listing in Hong Kong, less than 18 months after top aluminium producer Rusal became the first Russian firm to list there.

Fedun, who had earlier said the company was also looking at Singapore to float existing shares, did not specify the stake size that might be listed in Asia.

He also reiterated that Lukoil had no plans to attract a new strategic partner after its split with ConocoPhillips.