17 Apr 2018 18:45

TransContainer management proposes tying dividends in 2018 to debt/EBITDA level

MOSCOW. April 17 (Interfax) - The management of TransContainer has drawn up a new policy proposal that ties dividends to the level of the debt/EBITDA ratio.

"We have a proposal from management to adjust the dividend policy, making the size of the dividend inversely proportional to the level of the debt burden. We plan to submit [the issue and the specific proportions] to the board's examination and the board will decide whether to accept it or not. The specific proportions will be submitted to the board," TransContainer First Deputy Finance Director Andrei Zhemchugov said on the sidelines of the TransRussia-2018 forum on Tuesday.

Right now TransContainer's dividend policy targets payment of 25% of RAS net profit as dividends. "The actual share of net profit subject to payment as dividends might be larger or smaller than 25% depending on the company's plan of financial and economic operations, its investment program, the financial obligation repayment schedule, and the size of the free cash flow," according to the company's website. The board of directors approved the current dividend policy in February 2013.