CEO: Rostelecom may start paying dividends twice per year

MOSCOW, Jun 18 (PRIME) -- Russian telecom operator Rostelecom will discuss with the government the possibility of paying dividends twice a year, and, if the initiative is approved, the first payments could be done on results of January–September, President Mikhail Oseyevsky said on Monday.

“The board of directors, the committee on strategy has discussed this matter, and the position of both management and board of directors members is that such a system could be useful and attractive for shareholders, including stabilization of equity prices. This is why we’re going to consult with our core shareholder, the government of the Russian Federation,” Oseyevsky said at an annual general meeting of shareholders.

“If the policy is supported, the first new payment could be done on the results of the first nine months of 2018 and could take place in the first quarter of 2019. The second part will be paid traditionally after an annual general meeting.”

Under Rostelecom’s new dividend policy, approved in March, it will distribute at least 75% of its free cash flow in dividends, or at least 5 rubles per common share, on results of 2018–2020. The firm will also spend at least 50% of the net profit calculated under International Financial Reporting Standards, but no more than 100% of this figure, on dividends.

(62.6851 rubles – U.S. $1)

End