Lukoil's dividends to be no lower than 25% of IFRS profit, to increase with inflation
MOSCOW. April 25 (Interfax) - The board of directors of Lukoil has resolved that a revised version of the dividend policy should be developed and approved by the end of 2016, the oil company said in a statement.
The new policy is based on the following principles: priority of dividends in the cash flow distribution; intention of the company to annually increase the amount of dividends per share by no less than the rate of ruble inflation in the reporting period, based on CPI published by Federal State Statistics Service (Rosstat); and the amount of funds, allocated for payout of dividends, will be no less than 25% of Lukoil's consolidated net income under International Financial Reporting Standards (IFRS).
For the purposes of calculation of dividends, IFRS-based consolidated net income may be adjusted by the amount of non-recurring losses and gains.
In addition, the board approved the termination of the powers of Sergey Malyukov, a member of the management committee, and downsized the committee from 15 to 14 members. The board of directors had appointed Malyukov head of the internal audit service, directly reporting to the board of directors.
The old dividend policy called for paying at least 155 of net profit to US GAAP to shareholders. Lukoil reported to International Financial Reporting Standards (IFRS) for the first time for 2015, showing net profit of 291 billion rubles for the year.
