Gazprom to comply with dividend policy despite market conditions

MOSCOW, Sep 29 (PRIME) -- Russian gas giant Gazprom will be able to adhere to its dividend policy in the next few years regardless of the market and price conditions, head of the investor relations department Anton Dyomchenko said on Tuesday.

“There are certain limits of the share of adjusted net profit for annual payments in the dividend policy. And there is a mechanism for extraordinary situations, like we have in 2020, or for any increase of the debt burden, which is to balance dividend payments and sustainable development,” he said.

“The dividend policy allows us to say that we can adhere to it in the next few years regardless of the market environment. Our dividend policy envisages strict compliance with the obligations at any price conditions.”  

Dyomchenko also said that Gazprom hopes that its debt burden will return to a comfortable level in 2021.

“We expect the debt burden at a fairly high level in 2020, but hope that the net debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio will return to a level that is comfortable for us in 2021,” he said.

The executive said that Gazprom plans to issue ruble-denominated perpetual bonds.

He also said that the company does not intend to sell its stakes in independent gas producer Novatek, oil company Gazprom Neft or other companies to boost capitalization.

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