13 Apr 2010 13:12

FGC cites 2009 paper losses for decision not to pay dividends

MOSCOW. April 13 (Interfax) - OJSC Federal Grid Company UES (FGC) is not likely to pay out dividends for 2009 due to paper losses of 59.94 billion rubles to Russian Accounting Standards (RAS), head of the company's corporate department Andrei Gabov told Interfax.

With even the paper losses, dividends should not be paid out under Russian law, despite actual profit, he said.

The board of directors will make its decision relative to 2009 dividends before May.

Asset revaluation caused the paper losses for last year, after 4.46 billion rubles in net profits for 2008. Actual net profit in 2009, before adjustment for the assets revaluation, rose 27% from 2008 to 5.668 billion rubles.

FGC did not pay dividends for 2008, opting to invest profits in development instead. It did pay out 380 million rubles in dividends for 2007 out of 2.2 billion rubles in profits.