Enel Russia raising payout ratio from 40% to 65% by 2018, could pay 55% of earnings for 2016
MOSCOW. Dec 2 (Interfax) - Enel Russia has revised its dividend policy towards raising its payout ratio from the current 40% to 65% in 2018, it follows from a presentation of the generating company's strategic plan for 2017-2019.
The company could pay 55% of net profit as dividends for 2016, 60% for 2017 and 65% for 2018 and 2019.
Enel CFO Alberto De Paoli said in November that Italy's Enel Group was discussing with its shareholders the possibility of bringing the level of dividend payouts from Enel Russia's net profit from the current 40% to the group level. He did not specify what level. According to the Enel Group's updated strategy, the payout ratio will be 55% in 2016, 65% in 2017 and 70% in 2018 and 2019.
The Aton investment company has said following a meeting with representatives of Russian power companies that Enel Russia was thinking of raising the dividend payout ratio from 40% to 65%.
Enel Russia did not pay dividends for 2015 due to losses. Back in October 2013, the board of directors at Enel OGK-5, as the genco used to be known, approved dividend policy in keeping with which it would recommend shareholders accept dividends of 40% of net profit to International Financial Reporting Standards (IFRS) in the years to come.
Enel Russia operates the Konakovskaya, Nevinnomysskaya, Sredneuralskaya and Reftinskaya state district power plants (GRES) in southern and central Russia and the Urals. Italy's Enel owns a 56.43% stake, PFR Partners Fund I Limited has 19.03%, VTB - 7.69%, Prosperity Capital Management Limited - 6.33% and others - 10.52%.
