RusHydro plans to pay 50% of earnings as dividends in 2017-2018
MOSCOW. April 21 (Interfax) - RusHydro plans to allocate 50% of net profit to dividends until it completes major investment in new projects, First Deputy Director General George Rizhinashvili said at a meeting with analysts and investors.
"We want to increase the physical dividends at no less a pace than in the last two-three years, amounting to a balanced 50% of net profit in 2017-2018," Rizhinashvili said.
RusHydro's management recommended its board of directors pay out dividends for 2016 at 4.66 rubles per share, or 19.9 billion rubles altogether. A total of 50% of net profit to International Financial Reporting Standards (IFRS) plans to be allocated toward dividends.
"We will wait for a decision by shareholders, but we expressed our position firmly. The trend is an increase. We plan to hold to the corresponding level in the mid-term," Rizhinashvili said during investor's day, commenting on the dividend proposal.
RusHydro's board of directors was unable to give a recommendation on dividends in the beginning of April since they lacked a state directive.
Government officials continue to conflict over the size of dividends the state company should pay, with some arguing 50%, which was the level set in 2015 although there were a number of exceptions, or 25%+. The Energy Ministry believes RusHydro should pay out 25% of IFRS net profit.
RusHydro's net profit to RAS increased 1.4-fold to 41.9 billion rubles in 2016. The company's IFRS profit totaled 39.7 billion rubles.
The company paid out 15 billion rubles in dividends for 2015, or 50% of RAS net profit. The payment per share totaled 0.038863 rubles.
RusHydro is a state-owned energy holding which manages hydropower plants in Russia. Installed capacity of the group's plants is 38.9 GW, which includes RAO Energy System of East, as well as the Boguchanskaya HPP. The government owns a 66.8% stake in the company. VTB received a 12.9% stake in the company in March after acquiring an additional issue in the company and a quasi-treasury stake for 55 billion rubles.