The Regulation on the Dividend Policy of PJSC Inter RAO is used to determine the amount of dividends and the procedure for their payment. The Dividend Policy of PJSC Inter RAOApproved by a resolution of the Board of Directors dated June 30, 2014 (Minutes No. 118 dated July 03, 2014). The changes made to the Regulation on the Dividend Policy were approved by the Board of Directors on April 12, 2016 (Minutes No. 166 dated April 14, 2016). implies a balanced approach to the distribution of profits taking into account the interests of the Company’s long-term development and an increase in return and value for shareholders.
The Dividend Policy aims to meet the following objectives:
- enhancing investment appeal
- optimizing the distribution of net income
- respect for the rights and legitimate interests of shareholders
The Regulation on the Dividend Policy sets a dividend payment target level that is equal to 25% of the Company’s consolidated profit as determined based on the results of the reporting year using IFRS consolidated financial statements. When determining the amount of net profit allocated for the payment of dividends, the following factors are taken into account:
- the need to create funds
- projected net profit for the next fiscal year
- the need to fund the investment activities of PJSC Inter RAO
- the availability and optimality of sources to fund the investment activities of PJSC Inter RAO
When determining the amount of net profit allocated for dividend payments, no adjustments were made to this indicator in 2018.
Report on the payment of declared (accrued) dividends
In 2018, the Company worked to pay shareholders dividends in accordance with a resolution of the Annual General Meeting of Shareholders adopted on May 21, 2018Minutes No. 18 dated May 21, 2018 . In total, as of the end date for dividend payments (July 9, 2018), dividends had been transferred to 352,041 of the 356,481 legal entities and individuals, of which 5,560 entities did not receive dividends as they were returned to the Company for various reasons beyond the control of PJSC Inter RAO.
Based on the performance results in 2018, the PJSC Inter RAO Board of Directors in March 2019 recommended that the General Meeting of Shareholders vote to pay dividends in the amount of RUB 17.919 billion, or RUB 0.8 per share , which amounts to 25% of the IFRS net profit of PJSC Inter RAO.
|Date of recommendation from the Board of Directors on the amount of dividends||04/07/2015||04/07/2016||04/07/2017||03/15/2018|
|Record date of list of persons entitled to receive dividends||06/09/2015||06/21/2016||06/20/2017||06/01/2018|
|Date of the resolution of the Annual General Meeting of Shareholders on dividend payments||05/29/2015||06/10/2016||06/09/2017||05/21/2018|
|Dividend per share, RUB||0.001039679119||0.0178230516552||0.8||0. 2|
|Total dividends announced, RUB thousand||108,542.5||1,860,727||15,328,000||13,612,000|
|Total dividends paid, RUB thousand||107,719||1,860,156||15,323,778.511||13,607,859.626|
|Amount of dividends/RAS net profit, %||25||50||15.7||86.87|
|Amount of dividends/IFRS net profit, % (according to the Dividend Policy)||1.5||7.73||25||25|