Report: Gazprom to keep dividends at 2017-19 level

MOSCOW, Jan 23 (PRIME) -- Russia’s gas giant Gazprom is considering an asset sale, a freeze of dividends and a higher debt due to a lower export income, Bloomberg said quoting the company’s three-year budget available to the agency on Monday.

Gazprom intends to freeze dividends for 2017-2019 at the level of 2016, as said in the document. Deputy CEO Andrei Kruglov said in December that 2016 dividends will decline as compared to 187 billion rubles paid on 2015 results, which totaled 23.7% of net profit under the International Financial Reporting Standards or over 50% of adjusted net profit under the Russian Accounting Standards.

The company also plans to raise 350 billion rubles (U.S. $6 billion) from asset sales and to increase borrowings to 705 billion rubles in 2018 from 288 billion rubles in 2017.

Gas sales to Europe, hitting historical record highs in 2016, may slide to a previous years’ level. If crude oil prices that influence the gas price remain unchanged, Gazprom will need additional funds to “provide liquidity and fulfill obligations,” Bloomberg reported quoting the material.

(59. 6697 rubles – U.S. $1)

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