Speaking of those petro-dollars, much of the Russian economy is tied to the energy industry. The nation features some of the largest reserves on the plant and is set to be one of the world’s largest suppliers of oil and natural gas for years to come. We’ve recently highlighted the opportunity in state-owned Rosneft (PINK:RNFTF), but another lies in often-overlooked energy producer LUKOIL (PINK:LUKOY).
Responsible for roughly 17% of all Russian oil production and 18% of Russian oil refining capacity, integrated energy firm LUKOIL is just as big as many of its Russian state-owned rivals … yet the firm continues to trade at big discounts to other integrated majors like Exxon (NYSE:XOM) or BP (NYSE:BP).
Much of that discount can be attributed to the fact that it’s simply located in Russia. However, LUKOIL is the only Russian oil company whose share capital is dominated by minority stakeholders and not government.
For a P/E of just over 5, investors are able to gain access to some of the largest hydrocarbon reserves owned by energy firm to date as well a nice 4.7% dividend yield based on last year’s payouts.