29 Apr 2019 18:42

TMK board recommending 2018 dividend waiver

MOSCOW. April 29 (Interfax) - Directors at TMK decided at a meeting on April 25 to recommend a dividend waiver for 2018, the Russian pipe maker said in a statement.

TMK paid a dividend of 2.28 rubles a share or 2.36 billion rubles in total for 2017.

Management at TMK had considered it possible to pay dividends for 2018, despite posting a small loss for the year. "Dividends are more for the shareholders to decide. But since accumulated earnings are also used for payments, there is a possibility [that dividends could be paid for 2018]," Vladimir Shmatovich, deputy general director for strategy and development, said at the beginning of March. "I would not view the current profit result as an indicator of whether dividends will be paid or not," he said.

Dividend policy is to pay at least 25% of net profit to International Financial Reporting Standards (IFRS). TMK close 2018 with losses of $157,000, mainly due to FX translation.

This year's AGM takes place on June 20. The record date for shareholders to attend is May 26.

TMK has plants in Russia, the United States, Romania, Kazakhstan and Oman, and two research centers, in Russia and the United States. Dmitry Pumpyansky, its board chairman, is its main beneficiary with 65% and the free float is 34.9%.