Novomoskovsk Pipe (NVTR), AGM results

The shareholders approved strong 2006 results and record dividend payout.  

Impressive improvement in 2006 sales and margins

NVTR’s net revenue climbed to USD 173.4 mln, 42.1% yoy, EBITDA and net margins grew considerably as well — from 3.8% and 1.2% in 2005, respectively, to 8.7% and 4.8% in 2006. The growth in both sales and profitability is generally in line with our forecast. We projected 38.5% sales growth, and EBITDA and NI margins of 9.3% and 5.7%, respectively.

Dividend payout — twice 2006 Net Income

The shareholders voted for a USD 17.4 mln dividend payout, or USD 1.45 DPS (8.9% dividend yield). This is 2.1x larger than 2006 NI, and will be sourced from the company’s retained earnings. The dividend payout period is scheduled from May 15, 2007 to December 31, 2007. Ex-div date is May 16, 2007.