Enel Russia to return to paying share of net profit in dividends

MOSCOW, Feb 19 (PRIME) -- Russian power utility Enel Russia plans to return to paying a percentage of its net profit in dividends, although there is no decision about the size or the percentage or the dater, General Director Carlo Pallasciano Villamagna said on Wednesday.

“We expect that we will return to the policy of percentage of the net profit, like before, but what percentage it would be and when we will return to this approach is an issue for the board of directors to discuss, it will happen when the time is right,” he said.

Quarterly dividends are unreasonable, the company will pay dividends once a year, he said.

According to the materials of the company, it plans to pay a fixed amount of 3 billion rubles in dividends per year for 2019–2021. Previously, the company paid 5 billion rubles in dividends for 2018, or 65% of the net profit calculated under International Financial Reporting Standards (IFRS).

Enel Russia expects to get the next 4 billion ruble tranche for the Reftinskaya GRES power plant until October 1. The company already spent a part of money it received from the sale to repay ruble-denominated debts, and plans to spend part of the sum on investment and dividends, Villamagna said.

He also said that the company was considering an option of launching an incentive plan for the company’s management, but that it was too early to discuss it.

Enel Russia sold the Refstinskaya GRES power plant to power producer Kuzbassenergo in 2019. Enel Russia already received 16.7 billion rubles for the plant and transferred all the property to Kuzbassenergo, now it is to receive 4 billion rubles more and transfer all licenses and permits that Kuzbassenergo needs to operate the plant on its own.

(63.7698 rubles – U.S. $1)

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