Lukoil plans to spend 100% of adjusted cash flow on dividends

TASS Russian News Agency | Oct 16, 2019 at 4:59 PM

MOSCOW, October 16. /TASS/. The Board of Directors of Russian oil major Lukoil has approved the new principles of the company's dividend policy, the company announced on Wednesday.

According to Lukoil's press release, "the total amount of dividends on the company's issued shares, excluding the shares held by Lukoil Group entities, equals at least 100% of the Company's adjusted free cash flow."

Under the new policy, dividends are paid twice a year with the amount of interim dividends calculated based on the consolidated financial statements for the six-month period.

In accordance with the decision of the Board of Directors, the approved principles apply starting from the interim dividends for 2019.

"Based on the new principles, a revised version of the Regulations on the Dividend Policy of Lukoil will be drafted and submitted for approval of the Board of Directors by the end of 2019," the company said.

Lukoil is a vertically integrated oil and gas company established in 1991. The main mining assets of the company are located in Russia. Lukoil has a full production cycle, including exploration, production, and oil and gas refining, production of petrochemical products and oils, electricity output, trade and marketing. The company's shares are listed on the Moscow Exchange, depositary receipts - on the London Stock Exchange.