Ukraine sets 2023 dividend payout ratio of 80% for most state cos

MOSCOW. Feb 5 (Interfax) - Ukraine's government on February 2 set a 2023 dividend ratio of 80% for most state-owned companies, Ukrainian media reported, quoting an Economy Ministry statement.

"The government has set a basic payout ratio of 80% this year for 2023. The 2024 state budget plans UAH 66 billion in revenue from this," Deputy Economy Minister Alexei Sobolev said.

But Naftogaz of Ukraine will have to pay 95% of its net profit as dividends, and Ukrnafta 30%, provided that 50% of profit is earmarked for capital investments approved by the government in the company's financial plan for 2024.

The payout ratio for Danube Shipping Company is 30%, provided that 50% of profit is set aside for fleet renewal and developing the production capacity of the Kiliya Shipyard; and for Ukrainian Railways it is 50%, provided that it uses 30% of profit to finance capital investments, approved in the consolidated financial plan for 2024, for the reconstruction of critical railway infrastructure and renewal of rolling stock.

The ratio is 30% for Oschadbank and Ukrainian Financial Housing Corporation.

The ministry said companies could bigger portion of their profit into budget if they so wish.