Improving Dividend Policy

The Rosneft Dividend Policy formalizes the Company’s key principles of, and approaches to, dividend payouts to shareholders while using transparent decision-making processes for paying out (declaring) dividends and determining their size and payout procedure.

Our Dividend Policy is driven by the following principles:

  • When paying out (declaring) dividends, ensure compliance with the requirements of the Russian legislation, the Company’s Charter and internal documents
  • Maximize the transparency of the dividend calculation process
  • Increase the Company’s investment appeal
  • Maintain the balance of short- and long-term interests of shareholders
  • Support shareholder commitment to improving the Company’s profitability
  • Ensure that the dividend payout pattern comfortably reflects an increase in Rosneft’s net profit
  • Make dividend payouts in a way most convenient for the shareholders
  • Pay out dividends in the shortest possible time

On 31 August 2017, the Company’s Board of Directors approved amendments to the Dividend Policy to increase the target dividend from 35% to 50% of the consolidated net profit under IFRS. The target payout frequency – at least twice a year.

Rosneft’s Charter provides for a five-year period during which shareholders may claim the declared dividends that have been unpaid due to missing address or banking details, which is longer than required by Russian law.

The payout decision is made by the General Shareholders Meeting of the Company upon recommendation of the Board of Directors. When determining the recommended size of dividends, the Board of Directors relies on the amount of net profit reported in the Company’s annual financial statements.

Dividend size may also be influenced by the Company’s outlook, its financial standing and financing needs, overall macroeconomic environment and market conditions, and other factors, including taxation and legislation.

A total of RUB 63,377 mln was paid out by the Company as dividend for FY2016. The dividend payout ratio (dividends / consolidated net profit under IFRS) was 35%.

RUB 40,591 mln were paid as dividend for 1H 2017. The dividend payout ratio (dividends / consolidated net profit under IFRS) was 50%, in line with amendments to the Dividend Policy approved in 2017.

RUB 51,984 mln paid out in 2017 to JSC ROSNEFTEGAZ, the largest shareholder in Rosneft, add to the Russian Government’s revenue. As at 31 December 2017, Rosneft had no payouts outstanding to JSC ROSNEFTEGAZ.

As at 31 December 2017, the Company discharged 99.98% of its obligation to pay out dividends for FY2016 and 1H 2017. Dividends were paid to all shareholders of record, except for persons who failed to timely notify the issuer’s registrar of changes in the data recorded on their profile.

On 25 April 2018, Rosneft’s Board of Directors recommended the General Shareholders Meeting to approve RUB 6.65 per share as dividend for FY2017. The total amount of dividends recommended for FY2017 is RUB 111.1 Including the dividend for 1H 2017 and the dividend recommended by the Board of Directors to be approved at the General Shareholders Meeting in June 2018. bln or RUB 10.48 Including the dividend for 1H 2017 and the dividend recommended by the Board of Directors to be approved at the General Shareholders Meeting in June 2018. per share. The dividend payout ratio (dividends / non-consolidated net profit under RAS) for 2017 is 80%, while the dividend payout ratio (dividends / consolidated net profit under IFRS) is 50%.

Rosneft’s Dividend History
Year Dividend per Share,The 1:100 share split of September 2005 is factored in the amount of dividends per share. RUB Total Dividends Declared, RUB mln Total Dividends Paid, RUB mln Dividend Payout Ratio under RAS, %
1999 0.0221 200 200 3.4%
2000 0.0887 800 800 5.3%
2001 0.1219 1,100 1,100 11.0%
2002 0.1663 1,500 1,500 16.8%
2003 0.1650 1,500 1,500 8.1%
2004 0.1931 1,775 1,775 10.0%
2005 1.25 11,335 11,335 20.0%
Dividends Paid Out Following the Initial Public Offering Completed on 18 July 2006
2006 1.33 14,096 14,082 13.3% Net profit for 2006 is adjusted for one-off items.
2007 1.60 16,957 16,943 10.5%
2008 1.92 20,349 20,335 14.4%
2009 2.30 24,374 24,359 11.7%
2010 2.76 29,251 29,234 15.2%
2011 3.45 36,564 36,544 33.1%
4.08 41,928 41,905
2012 8.05 85,315 85,272 28.2%
2013 12.85 136,187 136,119 99.9%
2014 8.21 87,011 86,968 17.4%
2015 11.75 124,529 124,500 52.0%
2016 5.98 63,377 63,362 63.9%
1H 2017 3.83 40,591 40,581 27.7%