The Dividend Policy
The Dividend Policy approved by the Board of Directors formalises the Company’s key principles of, and approaches to, dividend payouts to shareholders and introduces transparent decision-making processes for paying out (declaring) dividends and determining their amount and payment procedure.
Principles of the Dividend Policy:
- ensuring compliance with the requirements of the Russian laws, the Company’s Charter and internal regulations when paying out (declaring) dividends;
- maximising the transparency of the dividend calculation process;
- increasing the Company’s investment appeal;
- maintaining the balance of short- and long-term interests of shareholders;
- supporting shareholder commitment to improving the Company’s profitability;
- ensuring that the dividend payout pattern comfortably reflects an increase in Rosneft’s net profit;
- making dividend payouts in a way most convenient for our shareholders;
- paying out dividends as soon as practicable.
The decision to pay dividends is made by the General Shareholders Meeting of the Company upon recommendation of the Board of Directors.
In 2019, the Company discharged 99.98% of its obligation 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 dividends declared but not paid due to missing address or banking details, which is longer than required by the applicable laws.
On 21 April 2020, Rosneft’s Board of Directors recommended that the General Shareholders Meeting approve RUB 18.07 per shareIncluding the dividend for the first six months of 2019 and the dividend recommended by the Board of Directors to be approved at the Annual General Shareholders Meeting in 2020. as dividend for FY2019. The total amount of dividends for FY2019, including dividends for the first six months of 2019, is RUB 354.1 bln or RUB 33.41 per share. The dividend payout ratio (dividends / non-consolidated net profit under RAS) for 2019 is 89.3%, while the dividend payout ratio (dividends / consolidated net profit under IFRS) is 50%.