The Regulation on the Dividend Policy of PJSC Inter RAO is used to determine the amount of dividends and governs the procedure for their payment. The Dividend PolicyApproved by a resolution of the Board of Directors on June 30, 2014 (Minutes No. 118 dated July 3, 2014). Changes 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). provides a balanced approach to the distribution of profits that takes into account the interests of the Company’s long-term development as well as increasing profitability and value for 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
The amount of net profit spent on dividend payments in 2019 was determined in accordance with the Regulation on the Dividend Policy. No adjustments were made.
Report on the payment of declared (accrued) dividends
In 2019, the Company worked to pay shareholders dividends in accordance with the resolution of the Annual General Meeting of Shareholders adopted on May 20, 2019Minutes No. 19 dated May 20, 2019..
The RAS net profit of PJSC Inter RAO for 2018 was distributed as follows:
- The creation of a Reserve Fund – RUB 946,938,800
- The payment of dividends – RUB 17,918,750
- The repayment of losses of previous years – RUB 73,086,700.
Dividends were paid to nominee shareholders and trustees who are professional securities market participants before June 18, 2019 and to others registered in the register of shareholders before July 9, 2019.
In total, as of the end date for dividend payments (July 8, 2019), dividends had been transferred to 353,155 of the 357,653 legal entities and individuals, of which 4,498 of the transfers were returned to the Company for various reasons beyond the control of PJSC Inter RAO.
No dividends were transferred to the federal budget in the reporting period. There are no debts on the payment of dividends to the federal budget.
Dividend payment history
|Dividend payment periods|
|For 2014||For 2015||For 2016||For 2017||For 2018|
|Date of recommendation from the Board of Directors on the amount of dividends||07.04.2015||07.04.2016||07.04.2017||15.03.2018||15.03.2019|
|Record date of list of persons entitled to receive dividends||09.06.2015||21.06.2016||20.06.2017||01.06.2018||31.05.2019|
|Date of the resolution of the Annual General Meeting of Shareholders on dividend payments||29.05.2015||10.06.2016||09.06.2017||21.05.2018||20.05.2019|
|Dividend per share, RUB||0.001039679119||0.0178230516552||0.146819923371648||0.130383141762452||0.171635536398468|
|Total dividends announced, RUB thousand||108,542.5||1,860,727.0||15,328,000.0||13,612,000.0||17,918,750.0|
|Total dividends paid, RUB thousand||107,719||1,860,156||15,323,778.511||13,607,859.626||17,913,302.724|
|Amount of dividends/RAS net profit, %||25||50||15.7||86.87||94.61|
|Amount of dividends/IFRS net profit, % (according to the Dividend Policy)||1.5||7.73||25||25||25|
Based on the performance results in 2019, the PJSC Inter RAO Board of Directors recommended that the General Meeting of Shareholders vote to pay dividends in the amount of RUB 20,482,500,000, or RUB 0.196192528735633 per share, which amounts to 25% of the IFRS net profit of PJSC Inter RAOResolution of the Board of Directors dated March 19, 2020, Minutes No. 268 dated March 20, 2020..