CEO says FESCO can mull dividends only after 2018

MOSCOW, Jun 28 (PRIME) -- Russia’s Far-Eastern Shipping Company, or FESCO, can consider dividend payments only after 2018, CEO Alexander Isurin said at a shareholder meeting on Thursday.

“We cannot think about dividends before restructuring, I mean, before we repay overdue debt,” Isurin said.

“If we stop the default and even get a profit in 2018, the board of directors can in principle consider dividend payments.”

He added that dividends would be very small in this case because the company needs to invest in the assets.

In May 2016, FESCO defaulted on a coupon payment on a U.S. $655 million Eurobond. In September 2017, the company said it coordinated the main conditions of debt restructuring, including a $547.5 million one-time repayment of Eurobonds and attraction of investment in shareholder equity or raising debt. In November 2017, the company opened a $680 million credit line with VTB.

FESCO is also in negotiations with VTB to allocate a part of the loan on payment of coupons and amortization of BO-01 ruble bonds.

End