The Dividend Policy
The Dividend Policy formalizes the 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.
Principles of the Dividend Policy:
- 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.
The payout decision is made by the General Shareholders Meeting of the Company upon the recommendations of the Board of Directors.
In 2018, the Company fulfilled 99.98% of its obligations to pay out dividends. 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.
The Company’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 the applicable legislation.
On 16 April 2019, Rosneft’s Board of Directors recommended the General Shareholders Meeting to approve RUB 11.33 per share as dividend for FY2018. The total amount of dividends for FY2018 including the amount already paid for 1H 2018 is RUB 274.6 bln or RUB 25.91 per share Including the dividends for H1 2018 and the dividends recommended by the Board of Directors to be approved at the General Shareholders Meeting in June 2019. . The dividend payout ratio (dividends / non-consolidated net profit under RAS) for 2018 is 59.6%, while the dividend payout ratio (dividends / consolidated net profit under IFRS) is 50%.