TNS Energo to set aside 70% of profit for dividends
MOSCOW. Feb 18 (Interfax) - OJSC TNS Energo Group plans to pay shareholders dividends amounting to at least 70% of its net profit, not including paper gains or losses on revaluation of investments, the company's draft dividend policy regulation shows.
However, the document states that the amount of money set aside for dividends can be reduced, for example in order to carry out investment programs. TNS Energo will also lower the dividend threshold if payment of dividends would reduce the company's equity, with violation of financial covenants on loans.
TNS will also pay shareholders less if the company's equity ratio is less than 20% at the end of the quarter in which it makes the decision to pay dividends.
TNS Energo will accept suggestions for the draft policy until March 1. The document is expected to be approved by the board of directors soon, the company said in a statement.
The regulation was drafted due to TNS Energo's reorganization into an open joint-stock company. LLC TNS Energo Group decided in February 2013 to reorganize into an open joint-stock company.
TNS Energo (formerly OJSC Transneftservice S) is a privately held power sales company that supplies electricity to companies Russia-wide. It manages nine power-sales companies in eight regions of the country: OJSC Voronezh Energy Distribution Company , CJSC Donenergosbyt, OJSC Karelia Energy Distribution Company, OJSC Kubanenergosbyt , OJSC Marenergosbyt , OJSC Nizhny Novgorod Distribution Company , OJSC Tula Energy Distribution Company, OJSC Energosbyt Rostovenergo , and OJSC Yaroslavl Distribution Company .