Transneft planning to create reserve for coverage of losses from Druzhba incident following 9M of cos operations
MOSCOW. Sept 5 (Interfax) - Transneft is planning to create a reserve fund following 9M of the company's operations to cover losses incurred following the off-spec oil incident in the Druzhba pipeline in April-May, Transneft First Vice President Maxim Grishanin said on a conference call.
Thus far, no claims for recovery of losses have been levied against Transneft, he said.
"As such, we cannot evaluate the volume of payments for compensation of losses. In this connection, we are planning to create a reserve following 9M of the company's operations," Grishanin said.
"We will create a reserve fund as soon as we are able to precisely estimate our future expenditures. Since we did not know their precise volumes as of this date, we did not create a reserve. The reserve will be created, we are planning to do it after 9M of the company's operations, and in the worst case, after 12 months," he said.
"Naturally, the creation of reserves will impact net profit, and naturally, will affect the volume of dividends. If some part won't be used, they will be dissolved, and will again be reflected in our indicators for next year," Grishanin added.