LUKOIL shares have updated the maximum for six months on dividend expectations
Quotes of the oil company grow on expectations of high dividends, after LUKOIL significantly improved financial results in the first half of the year
LUKOIL shares (LKOH) updated their half-year maximum at the morning session on October 7. At 7:58 GMT, the quotes of the oilman added 1.14%, to у5633.5 per paper. This is the highest level since April 7, 2026.
Quotes support dividend expectations. The company may soon announce dividends for the first half of 2026 with yields above 9%, analysts at BCS World of Investments note.
In the first half of the year, the company improved financial results, with a jump in free cash flow allowing for high interim dividends at the end of 2026. We expect that their yield will exceed 10%, and the total payments in the next year can provide about 16-18%, - forecasts investment analyst of Alfa-Investments Alexey Devyatov.
Financial results of LUKOIL under IFRS for the first half of 2026:
revenue increased by 8% to чи 2.06 trillion; net profit increased by 52.5% to чи440.1 billion; net profit attributable to shareholders increased 1.5 times to чи430.9 billion; operating profit jumped 150.4% to чи610.9 billion.
At the same time, exchange rate differences also had a smaller negative impact: a loss of е18.9 billion against е69.2 billion a year earlier.
Despite the write-off of its foreign business, LUKOIL enjoys excellent free cash flow and maintains a significant cash position. Due to this, a high key rate does not adversely affect the company's profit, experts write. However, there are risks for the company, warns the BCS. The main one is a possible quick correction of oil prices in case of signs of normalization of the situation in the Middle East.
LUKOIL has a large share of exports in revenue, so the high price of oil is especially favorable for it. Alfa-Investment investment analyst Alexey Devyatov believes that even in the event of a settlement of the conflict in the Middle East, the cost of energy resources will remain increased.
In the first half of 2025, LUKOIL paid its shareholders an interim dividend of у397 per share, and by the end of 2025, a final dividend of у278 per share.
LUKOIL is one of the largest publicly owned vertically integrated oil and gas companies in the world. It accounts for about 2% of global oil production and about 1% of proven hydrocarbon reserves.
