Lukoil confirms plans to increase 2014 dividends even if they reach 50% of profit
MOSCOW. March 3 (Interfax) - Lukoil has confirmed its plans to increase 2014 dividends compared with 2013 in spite of the difficult situation on world markets, the company's vice president for strategic development, Leonid Fedun, said during a conference call on Lukoil's 2014 financial performance.
"We are maintaining our previous position that 2014 dividends will be increased. And the first interim dividends in 2014 were 20% higher than 2013 dividends," he said.
"We aren't afraid of dividends possibly totaling up to 50% of our profit including [dividend] write-offs," Fedun added.
He declined to give investors specific figures, noting only that the size of dividends depends on the ruble's exchange rate against the dollar, which no one can predict now.
"We know that the budget provides the opportunity to pay out a specific amount in rubles, and there are expectations as concerns the exchange rate," Fedun said, refraining from further comment.
In 2014, Lukoil had net profit of $4.75 billion, down 39.4% from profit of $7.8 billion in 2013.
Net profit adjusted for losses from the impairment of assets, as well as for write-offs linked to dry wells fell 31.3% year-on-year to $7.087 billion in 2014.
