OREANDA-NEWS. April 01, 2010. The announced net income result beat expectations. We expect a positive market response and to have a favorable impact on the cost of Lenenergo preferred shares, as they could bring in a robust dividend yield.

Lenenergo’s RAS net income more than doubled in FY2009 and totaled RUB 3.25 billion. The rise in net income was due to a quicker upturn in revenue as compared to COGS.

The published net income result is almost 50% higher than the RUB 2.17 billion target. This should bring forth a positive market response and have a favorable impact on the price for company preferred shares, as Lenenergo makes regular dividend payouts on prefs. Traditionally, Lenenergo allocates 10% of net income to preferred share dividends. This year, therefore, dividend could be set at RUB 3.50 per share, which corresponds to a 12.7% dividend yield. Since the most substantial rise in net income was registered in 4Q2009.