Dividends

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’s Corporate Governance Code.

Rosneft’s dividend policy strikes a balance between shareholders’ interests and the Company’s business needs, and is intended to improve Rosneft’s investment 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:

1. The date to determine persons entitled to receive such dividends, pursuant to the dividend payment/declaration resolution, may not be set earlier than 10 days or later than 20 days from the date of the said dividend payment/declaration resolution was adopted.
2. The term for dividend remittance to a nominee holder or a trust manager that is a security market professional, all as listed on the Company's share register, may not exceed 10 business days; and the term for dividend remittance to other persons listed on the share register shall not exceed 25 business days of the record date for the purpose of determining the persons entitled to receive dividends.

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, but are usually equal to at least 10% of net income.

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 June 17, 2015 the General Meeting of Shareholders decided to approve dividends for 2014 at recommended by the Board of Directors level of RUB 8.21 per share. The total amount of dividends for 2014 is RUB 87 011,0 mln. The ratio of dividends to non-consolidated RAS net income is 17,4%. The ratio of dividends to consolidated IFRS net income is 25%.

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).
 

Rosneft’s Dividend History

¹ — The dividend amounts, which are shown, take account of the 1:100 share split carried out in September 2005.
² — Net profit for 2006 corrected for non-recurring items.

Key Dividend Dates

^* — In accordance with amendments of Federal Law On Joint-Stock Companies, that came into effect on January 1, 2014
^** — The term for dividend remittance to a nominee holder or a trust manager that is a security market professional, all as listed on the Company's share register
^** — The term for dividend remittance to other persons listed on the share register, apart from nominee holder or a trust manager that is a security market professional