Gazprom says to pay dividends fully for 2020, 2021

MOSCOW, Feb 20 (PRIME) -- Russian gas giant Gazprom will pay full dividends for 2020, while payments for 2021 will reach 50% of the adjusted net profit under International Financial Reporting Standards (IFRS), Deputy CEO Famil Sadygov said late on Friday.

"I’ve said many times that yes, in accordance with the dividend policy we have a chance not to pay dividends for 2021, if net debt to EBITDA is above 2.5,” Sadygov said.

“We expect an increase of the figure this year, in the results of 2020. I’ve reiterated that we have no plans to use it as a pretext for nonpayment or lower payment."

According to the official, Gazprom expects the net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) ratio to decrease below 2 in 2021 from slightly less than 3 estimated for 2020.

"This was the key challenge for us not to allow significant deterioration of the debt burden of the company," Sadygov said.

He said that Gazprom's executives like the market situation but have no plans to raise the investment program.

"We set a record almost every day… We are happy about it but only a month and a half passed. We are setting no goal to raise any investment program or any other spending," Sadygov said.

Gazprom has no plans to hold a buyback but does not rule doing this in the future, he said.

Sadygov separately said that Gazprom is about to finish the executive motivation program and will approve it in 2021.

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