27 Dec 2017 15:52
PJSC ROSSETI
The Board of Directors approves the new dividend policy
27 December 2017. Moscow, Russia. - PJSC ROSSETI (LSE: RSTI), the largest electricity transmission and distribution grid company in Russia, today announces that on 22 December 2017, the Board of Directors of PJSC ROSSETI approved a new version of the Regulations for Dividend Policy of PJSC ROSSETI at an in-person meeting.
Amendments to the Regulations for Dividend Policy of PJSC ROSSETI mainly affect the procedure for determining the size of dividends.
The Company's dividend policy is guided by the principles of compliance with Russian laws, Decree of the Russian Government No. 1094-r dated 29 May 2017, as well as by corporate governance standards, while seeking to balance the interests of the Company's shareholders with the Company's capital requirements for promoting and pursuing its sector-wide functions outlined in the Strategy for Development of the Electric Grid Sector of the Russian Federation. The Company's dividend policy also ensures that the size of dividends is at least 50% of its net profit determined in accordance with its financial statements, including consolidated statements, prepared under the International Financial Reporting Standards («IFRS») and calculated in line with the procedure set out in the Regulations.
The amount of dividends to be paid out for the reporting year is determined in line with the Procedure for Calculating Dividend Payments based on the general formula below:
DIV = MAX (DIV1; DIV2) - DIVint, where
DIV is the total amount of net profit to be paid out as dividends on preference and ordinary shares;
DIVint is the amount of interim dividends paid out for the first quarter, six months, or nine months of the reporting year;
DIV1 is dividends calculated based on the Company's net profit as determined in accordance with its accounting (financial) statements prepared under the Russian Accounting Standards («RAS»).
DIV2 is dividends calculated based on the Company's net profit as determined in accordance with its consolidated financial statements prepared under IFRS and payable to the Owners of the Company.
The amount of dividends (calculated in accordance with IFRS) (DIV2) may not exceed the net profit determined based on RAS accounting (financial) statements for the reporting year, unadjusted for revaluation of subsidiaries' shares traded in the stock market, related income tax, profit allocated to provide financial support for subsidiaries' Development Plans designed to promote their financial stability and growth and approved by the Board of Directors of PJSC ROSSETI, and mandatory contributions to the reserve fund and other funds in line with the Company's Articles of Association.
The Regulations for Dividend Policy of PJSC ROSSETI also set out the terms and procedure for paying out interim dividends, which stipulate that interim dividends may not exceed 50 % of net profit under RAS, adjusted for revaluation of subsidiaries' shares traded in the stock market, related income tax, and the share of net profit allocated to provide financial support for subsidiaries' Development Plans designed to promote their financial stability and growth and approved by the Board of Directors of PJSC ROSSETI.
PJSC ROSSETI has been consistent in its efforts to improve operational efficiency in order to implement its dividend policy, maintain a sustainable financial position, and ensure steady growth rates.
Last year, PJSC ROSSETI paid its first ever dividends since its establishment in 2013. Shareholders were paid interim dividends for the first quarter (1.8 billion rubles), while the total amount of dividends for 2016 was 3.8 billion rubles. For the first time in its history, the Company paid dividends to holders of ordinary shares in PJSC ROSSETI.
For further information:
PJSC ROSSETI
Maria Stepanova, Head of IR +7(495) 995 5333 (ext. 3961)
Yulia Martynova, IR +7(495) 995 5333 (ext. 3834)
Horizon
Maria Novokreschenova +7 (495) 225 0335
Yaroslav Gryaznov +7 (495) 225 0335 (ext. 124)
PJSC ROSSETI is the largest electricity transmission and distribution grid company in Russia. It is also one of the largest electricity transmission and distribution grid companies in the world by length of electricity lines and installed transformer capacity. PJSC ROSSETI holds interests in and manages 15 grid companies in Russia. The Company together with its subsidiaries owns and operates 2.31 million kilometers of electricity transmission and distribution lines with a total installed transformer capacity of 773 GVA. The Company operates in 78 regions of Russia.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of PJSC Rosseti. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industry, as well as many other risks specifically related to PJSC Rosseti and its operations.