Tatneft Board of Directors recommended to pay the dividends for the 9 months of 2017
OREANDA-NEWS. On 6 November 2017 the Board of Directors of Tatneft (by proxy voting) resolved on its own initiative to convene an extraordinary shareholders meeting and recommended to the shareholders to approve the dividends based on the results for the 9 months of 2017 in the amount of 27.78 Rubles per each preferred and ordinary share (2778% of nominal value of each share), which represents in aggregate 75% of net income of PJSC Tatneft under Russian Accounting Standards (RAS) in the said period. Upon determining the amount of dividends for the 9 months of this year the Board of Directors relied on the Company’s operating results in the respective period, the implementation of Tatneft Group Development Strategy until 2025 (“Strategy 2025”) and free cash flow projections.
In particular, based on the results for the first three quarters of 2017 net income of PJSC Tatneft under RAS reached 86.2 billion Rubles. Successful implementation of Strategy 2025 supports cash flow generation in excess of initial projections, procuring full financing of the Company’s investment program, meeting all its commitments, including social ones, satisfaction of the working capital requirements and high dividend income for shareholder. In April of this year, upon developing the recommendation to the annual shareholders meeting with respect to the dividends for 2016, a new target level of dividend payments was set at 50% of net income under IFRS and the principle of distribution to shareholders of funds not employed in the development of Tatneft Group in accordance with its strategy was announced. The surpassing of target level of dividend payments based on the results for the 9 months of 2017 was achieved owing to effective implementation of Strategy 2025, and the Company’s management will aim to maintain the same level of dividend payments for the full year. The Board of Directors proposed to the extraordinary shareholders meeting to approve 23 December 2017 as the date on which persons entitled to receive the dividends based on the 9 months 2017 results shall be determined.
The extraordinary shareholders meeting will be held on 12 December 2017 by proxy voting. The list of persons entitled to participate in the extraordinary shareholders meeting will be set as of 17 November 2017.