29 Nov 2017 12:53

Gazprom not planning to increase dividends in next 2 years, cites record investments

MOSCOW. Nov 29 (Interfax) - Gazprom CEO Alexei Miller reiterated the position of the Russian gas giant's management that dividends should not be increased in the next two years at a meeting with President Vladimir Putin on Tuesday.

The government is trying to force state companies to pay out dividends equivalent to 50% of net profit to IFRS, but every state group is finding arguments for an exception to be made in its case. The Finance Ministry has factored a Gazprom dividend of 14.32 rubles per share for 2017 and 15.62 rubles per share for 2018 (2019 revenues) into the 2018 budget.

Miller's words indicate that Gazprom management wants to continue to pay only 8.04 rubles per share, or 190 billion rubles in total, going forward.

"Although company investment will rise in the next two years, we will absolutely keep a balanced dividend policy. Dividend payments are currently over 190 billion rubles and in spite of increases to Gazprom's investment program, dividend payments will stay at the same level of 190 billion rubles in coming years," Miller said.