Dividends
On May 17, 2006 Rosneft’s Board of Directors voted to approve the Regulation on Dividend Policy, which was developed in accordance with Russian legislation, the Company Charter, and the Rosneft Code of Conduct.
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 strives to continuously increase the returns, of its shareholders.
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. In deciding dividend amounts the Board is guided by the level of net profit, as reflected in the non-consolidated financial accounts of Rosneft to Russian Accounting Standards. In accordance with Rosneft’s dividend policy, 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 profit.
Rosneft’s strategy is to steadily increase dividend payments in absolute terms. In determining the amount of annual dividends, the Board of Directors also takes account of dividend policy of other leading oil & gas companies. A number of other factors may also have an impact on the size of dividend payments. Such factors include: 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 10, 2011 the General Meeting of Shareholders decided to approve dividends for 2010 at a level of RUB 2.76 per share, which is 20% more than dividends for 2009. The total amount of recommended dividends for 2010 is RUB 29,251 mln.
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
| |
Dividends per share, RUB |
Total dividends announced, RUB mln |
Total dividends paid, RUB mln |
Payout ratio under RAS, % |
| |
| 1999 |
0.0221 |
200 |
200 |
3.4% |
| 2000 |
0.0887 |
800 |
800 |
5.3% |
| 2001 |
0.1219 |
1 100 |
1 100 |
11.0% |
| 2002 |
0.1663 |
1 500 |
1 500 |
16.8% |
| 2003 |
0.1650 |
1 500 |
1 500 |
8.1% |
| 2004 |
0.1931 |
1 775 |
1 775 |
10.0% |
| Dividends paid out after the IPO, which closed on July 18, 2006 |
| 2005 |
1.25 |
11 335 |
11 336 |
20.0% |
| 2006 |
1.33 |
14 096 |
14 079 |
13.3%2 |
| 2007 |
1.60 |
16 957 |
16 936 |
10.5% |
| 2008 |
1.92 |
20 349 |
20 326 |
14.4% |
| 2009 |
2.30 |
24 376 |
24 341 |
11.7% |
| 2010 |
2.76 |
29,251 |
|
15,2% |
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
| |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
| |
| Board of Directors’ dividend recommendation |
26 April 2005 |
5 May 2006 |
22 May 2007 |
25 April 2008 |
28 April 2009 |
24 April 2010 |
14 April 2011 |
| Record date |
24 May 2005 |
22 April 2006 |
23 May 2007 |
16 April 2008 |
30 April 2009 |
29 April 2010 * |
21 April 2011 |
| Dividend approval by Annual General Shareholders Meeting |
24 June 2005 |
7 June 2006 |
30 June 2007 |
5 June 2008 |
19 June 2009 |
18 June 2010 |
10 June 2011 |
| Last payout date |
31 December 2005 |
31 December 2006 |
31 December 2007 |
31 December 2008 |
31 December 2009 |
31 December 2010 |
9 August 2011 |
* — record date for GRDs. Record date for the Company’s ordinary shares was April 29, 2010
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