Moscow. April 24. The Board of Directors of Rosneft has recommended that the annual meeting of shareholders to adopt a decision on payment of dividends following the results of work in 2016, in the amount of 5 rubles 98 kopecks per ordinary share, reads a company statement. Thus, dividends will be allocated 35% of IFRS net profit, or 63.4 billion.
Earlier it was reported that the Agency, as in the previous year, divided on the issue of dividend payment “Rosneft”. So, the Federal property management Agency on results of work of “Rosneft” in 2016 are invited to send the payment of dividends 50% of net profit under IFRS, and the Ministry of energy of 35%.
By the end of 2016 net profit of Rosneft under IFRS amounted to 181 billion RUB compared to 355 billion a year earlier, the company – 99 billion rubles.
If it were adopted on the proposal of the government, then dividends could be 90,5 bln, or RUB of 8.54 per share. The proposals of the Federal property Agency was founded on the fact that the law on the Federal budget for 2017 and the planned period for 2018-2019. includes receipt of dividends from joint-stock companies with state participation of not less than 50% of net profit under IFRS. In addition, the financial results of Rosneft for the year 2016, in particular, free cash flow of $ 302 billion and the net debt/EBITDA of 1.5 provide direction to the dividend the sum of 90,5 billion rubles was placed in the Department.
The decision on the amount of dividends “Rosneft” for 2015 was also preceded by a discussion of the agencies: Ministry of economic development has prepared a Directive providing for the payment of 50% of net profit in accordance with IFRS, the Ministry of energy – 25% of the profits. In the end, a compromise was made – 35% of profit of 124.5 billion rubles., or 11.75 per share.
In December 2016 in order to increase the investment attractiveness of the company’s Board of Directors approved changes to the dividend policy of Rosneft, under which dividend payments in the foreseeable future will be not less than 35% of IFRS net income. The new dividend policy also provides for payments to shareholders twice a year.
Rosneft also reported that as the auditor of the financial statements for 2017 under the Russian standards and consolidated financial statements according to IFRS the Board of Directors recommended, OOO “Ernst and young” at the same time determining the size of remuneration to the auditor.
Authorized capital of NC is divided into 10 billion 598 million 177 thousand 817 shares. The largest shareholders of Rosneft are state-owned JSC “Rosneftegaz” (50%+1 share), BP Russian Investments Limited (19,75%) and QHG Shares Pte. Ltd. (19.5 per cent).