Russia’s Gazprom may pay record amount of dividends for 2018

MOSCOW, Feb 26 (PRIME) -- Russian gas giant Gazprom plans to pay all-time high final dividends for 2018, the company said in a presentation for investors published on Tuesday.

“Historically record-high dividends in 2019 expected,” the presentation read.

Gazprom Deputy CEO Andrei Kruglov said during the company’s investor day that large investment projects will be launched in 2019 ensuring even higher dividends in the future.

“Gazprom plans to pay a record amount of dividends for 2018 of 10.43 rubles per share, which is a 30% growth on the year in ruble terms as compared with the payment for 2017,” he said.

“The Russian government wants state companies to raise dividend payments to 50% of the net profit as calculated under IFRS (International Financial Reporting Standards). We expect that an increase in the company’s free cash flow will ensure higher dividend payments after launches of large investment projects this year.”

In June 2018, Gazprom shareholders approved paying 8.04 rubles per share, or a total of 190.335 billion rubles, in dividends for 2017, leaving the dividend payout flat on the year. The sum accounted for 26.6% of the company’s IFRS net profit for the year.

According to the company’s website, the major shareholders are the Federal State Property Management Agency with 38.37% and state oil and gas holding Rosneftegaz with 10.97%.

(65.2582 rubles – U.S. $1)

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