Novatek may increase dividend payment rate in late Q2 2020

TASS Russian News Agency | Jan 23, 2020 at 7:16 AM

DAVOS, January 23. /TASS/. At the end of the Q2 2020, Russia's largest independent gas producer Novatek may revise its dividend policy to increase the minimum payout ratio of the share of net profit under the International Financial Reporting Standards (IFRS), Head of Novatek Leonid Mikhelson told reporters on the sidelines of the World Economic Forum (WEF) in Davos

"Dividends will be maximized. As we have said, in the second quarter we'll finish fulfilling suspensive conditions for Yamal LNG, and there is an opportunity to review the dividend policy upward," he said, adding that such decision could be made at the end Q2.

Novatek's dividend policy implies payment of at least 30% of consolidated net income under IFRS. The largest shareholders of Novatek are Leonid Mikhelson (24.76%) and Gennady Timchenko (23.49%). The French company Total owns 19.4%, Gazprom - 9.99%.

Novatek shares are listed on the Moscow Exchange, global depositary receipts are listed on the London Stock Exchange.

Novatek is engaged in exploration, production, processing, and marketing of gas and liquid hydrocarbons. Deposits and license areas of the company are located in the Yamalo-Nenets Autonomous District.