Ukrhydroenergo to pay standard 50% of profit as dividends to state

MOSCOW. Feb 12 (Interfax) - Ukraine's government has set a standard dividend payout ratio of 50% of 2023 net profit for Ukrhydroenergo, Ukrainian media reported with reference to the company.

Ukrhydroenergo said with reference to a resolution of February 9, 2024, published on the Government Portal, that this payout ratio is applicable provided that it allocates 30% of net profit to finance the restoration of damaged property, the construction of protective structures and other engineering and technical measures.

The resolution also recommends that companies with a government stake make an advance payment by February 29 of at least 50% of annual dividends based on projected profit for 2023 and that Ukrnafta pay at least UAH 3.9 billion in advance.

All dividends must be paid by July 1, otherwise measures should be taken to terminate contracts with the heads of companies.

Ukraine's government on February 2 set a 2023 dividend ratio of 80% for most state-owned companies, it has been reported, quoting an Economy Ministry statement.

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.

No mention was made of Ukrhydroenergo.

The 2024 state budget plans UAH 66 billion in revenue from these dividends in 2024, Deputy Economy Minister Alexei Sobolev has said.