17 Mar 2010 14:13

Alrosa could pass on dividends despite 2.3 bln rubles profit in 2009

MOSCOW. March 17 (Interfax) - Management at Alrosa is proposing a dividend waiver for 2000, despite the 2.348 billion rubles net profit that the diamond miner posted.

The state-owned Alrosa said in a statement that the executive board would be making the recommendation to the supervisory board due primarily "to Alrosa's complex financial position, caused by the global diamond market crisis. Management proposes to use profit to fund capital expenditure, loan repayments and deductions to the reserve fund."

Alrosa did not pay dividends for 2008 either, but paid 11,200 rubles a share or a total of 2.024 billion rubles for 2007. This was almost 16% of net profit to Russian Accounting Standards (RAS), which was 14.133 billion rubles that year.

The Russian Federal Property Agency received a controlling stake in Alrosa when the diamond miner was "federalized". The agency holds 50.9256%, Yakutia's Property Relations Ministry owns 32.0002%, eight districts of Yakutia own 8.0003% and individuals and corporate bodies own the remaining 9.0739%.