On June 05, 2015 Rosneft’s Board of Directors voted to approve the Dividend Policy, which was developed in accordance with Russian legislation, the Company Charter, and the Rosneft Corporate Governance Code. Changes to the Rosneft Dividend Policy were approved by the resolution of the Company Board of Directors dated 07 December 2016.
Rosneft’s dividend policy strikes a balance between shareholders’ interests and the Company’s business needs, and is intended to improve Rosneft’s Investorsment attractiveness and shareholder value. The Company strictly observes the rights, and does all it can to increase the returns of its shareholders.
On June 27, 2014, the General Meeting of Shareholders approved new editions of the Charter of the Company, including following:
The decision to pay dividends (and the amount of dividends and the form of payment) is taken by the General Meeting of Shareholders of Rosneft, based on recommendations of the Board of Directors. As stated in the Regulation on Dividend Policy, the Board is guided in its decisions on dividend amounts by the level of net income, as reflected in the non-consolidated financial accounts of Rosneft to Russian Accounting Standards. Recommendations by the Board of Directors on the amount of dividends to be paid are determined by the Company’s financial results for the year. A target payout ratio is at least 35% of the Company’s net income under International Financial Reporting Standards. Target frequency of Rosneft dividend payments is at least twice a year.
In determining the amount of annual dividends, the Board of Directors takes account of the dividend policy of other leading oil & gas companies. A number of other factors may also have an impact on the size of dividend payments, including: the Company’s business prospects, its financial situation and financing needs, and the overall macroeconomic situation and market environment, as well as other factors, including aspects connected with tax and legislation.
On 15 June 2016, the General Shareholders Meeting approved annual dividends of RUB 11.75 per share for 2015, as recommended by the Board of Directors. The total amount of recommended annual dividends for 2015 is RUB 124 529 mln. The dividend payout ratio is 52% of unconsolidated RAS net income or 35% of consolidated IFRS net income for 2015.
Dividend payments on shares held as GDRs are made to the Depositary in rubles. The Depositary converts the dividends into US dollars and distributes them to GDR holders (net of the Depositary’s fees).
|Dividends per share, RUB||Total dividends announced, RUB mln||Total dividends paid, RUB mln||Payout ratio under RAS, %|
|Dividends paid out after the IPO, which closed on July 18, 2006|
|Board of Directors’ dividend recommendation||5 May 2006||22 May 2007||25 April 2008||28 April 2009||24 April 2010||14 April 2011||27 April 2012||17 September 2012||30 April 2013||28 April 2014||23 April 2015||22 April 2016|
|Record date||22 April 2006||23 May 2007||16 April 2008||30 April 2009||29 April 2010||21 April 2011||04 May 2012||21 September 2012||06 May 2013||08 July 2014||29 June 2015||27 June 2016|
|Dividend approval by Annual General Shareholders Meeting||7 June 2006||30 June 2007||5 June 2008||19 June 2009||18 June 2010||10 June 2011||20 June 2012||30 November 2012||20 June 2013||27 June 2014||17 June 2015||15 June 2016|
|Last payout date||31 December 2006||31 December 2007||31 December 2008||31 December 2009||31 December 2010||9 August 2011||19 August 2012||29 January 2013||19 August 2013||by 22 July 2014**
by 12 August 2014***
|by 13 July 2015 **
by 03 August 2015 ***
|by 11 July 2016 **
by 01 August 2016 ***