TMK board might recommend dividends for 2023 in April

MOSCOW. March 1 (Interfax) - The board of directors of TMK might consider the issue of paying final dividends for 2023 at its meeting in April, the Russian pipe manufacturer's investor relations director, Igor Baryshnikov said in a presentation of the group's financial results for last year.

"Our current net debt to EBITDA [ratio] is now at a comfortable level of 1.9, meaning we can easily distribute more than 25% of net profit. If you look at how we distributed profit before, the company paid more than 25%," Baryshnikov said.

"In terms of timing, this usually takes place as follows. The company's board of directors usually makes a recommendation on dividends in April, it is approved at a meeting in June and payment [takes place] before the end of the summer. In principle, according to the dividend policy, obviously this will, of course, be the approval of the board of directors and meeting, but, nonetheless, the company can easily distribute more than 25% of net profit," Baryshnikov said.

According to him, the company has no plans to revise the dividend policy and tie the payout to free cash flow for the time being.

Net profit in 2023 amounted to 39.4 billion rubles, which is 6% lower than in 2022 (41.9 billion rubles). Earnings per share amounted to 37.59 rubles compared to 41.01 rubles a year earlier.

For H1 2023, TMK paid dividends in the amount of 13.45 rubles/share (total payout of 13.9 billion rubles).

Last summer, the Cyprus-based TMK Steel Holding, which owns control (88.9%) in TMK, re-registered in a Russian jurisdiction: TMK Steel Holding was registered on Russky Island in the Primorye Territory.