CEO says Rosneft investment to change little with 50% dividends

ST. PETERSBURG, Sep 29 (PRIME) -- A increase in the amount of dividends that Russia’s Rosneft to 50% of net profit under International Financial Reporting Standards (IFRS) will change the investment program insignificantly, at the same time increasing the capitalization, CEO Igor Sechin said Friday at an extraordinary shareholder meeting.

“Concerning an issue of whether a decision on a 50% dividend payout will lead to a change in the investment program, it will of course, albeit insignificantly. This is not an issue for us, it will even increase capitalization… make debt cheaper. This is why it is in general a positive decision for the company,” Sechin said.

Rosneft is expected to pay about 40.6 billion rubles, or 3.83 rubles per share, in dividends for January–June.

Sechin said that the dividend rise will not affect financial stability of Rosneft.

He also said that Rosneft expects that China will decide on Rosneft’s stake acquisition by CEFC until the end of 2017.

“The procedures arising from the need to receive permits from regulators both in China and the Russian Federation continue. After the procedures end, the company (CEFC) will enter the list of shareholders with a 14.16% stake. This will not require an extension of the board of directors… We expect these procedures to finish until the end of the year,” Sechin said.

Sechin said that election of former Chancellor of Germany Gerhard Schroder to the board of directors of Rosneft will not cause a conflict of interests although he is the chairman of the shareholder committee of Russian gas pipeline project Nord Stream AG.

(58.4255 rubles – U.S. $1)

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