CFO: Russia’s Novatek to pay higher dividends for 2018

HOUSTON, Mar 14 (PRIME) -- Russian independent gas producer Novatek plans to pay higher dividends for 2018 than for 2017, CFO and Deputy CEO Mark Gyetvay told PRIME late on Wednesday on the sidelines of the CERA Week conference.

In February, the company said that the net profit attributable to shareholders rose 4.7% to 163.742 billion rubles in 2018, as calculated under International Financial Reporting Standards.

“Dividends will be (discussed) next week. We will approve them at a meeting of the board of directors…Of course, there will be an increase, as profit of the company grew. We pay at least 30% of our net profit (in dividends),” he said.

Gyetvay also said that Novatek plans to prolong its share buyback program after it expires in June. “This is a U.S $600 million (program), and we renew it every year. The probability of us prolonging the program is very high,” he said.

In May 2018, the board of directors extended the program until June 7, 2019. Under the program, the company will buy its shares and GDRs via its unit Novatek Equity (Cyprus) Limited.

According to the latest public data of Novatek, CEO Leonid Mikhelson controlled 24.75% in Novatek. Gas giant Gazprom owns 9.99% in the company, tycoon Gennady Timchenko’s companies Ena Invest and Volga Group own 19.16% and 4.3%, respectively, and France’s Total has a 19.4% stake.

(65.5890 rubles – U.S. $1)

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