Russia Monitor is a review of the most important events related to Russian internal and external security, as well as its foreign policies.
Date: 30 April 2021
Russia’s Rosneft Plans Lower Dividends Than Last Year
Russia’s biggest oil company Rosneft is planning to spend 50 percent of its 2020 net profit on dividends. In this way, shareholders will have their payout five times lower than the year before. The general shareholders meeting of Rosneft will take place on June 1, 2021, in absentia.
The board of directors of Rosneft, with former German Chancellor Gerhard Schroeder at the helm, recommended the general shareholders meeting the decision to pay out 6.94 roubles per share in dividends on 2020 results. or five times less than the year before. In 2019, Rosneft attributed a record-high dividend of 33.41 roubles per one share. At a February meeting with Vladimir Putin, Igor Sechin, the CEO of Rosneft, informed Vladimir Putin about his company’s intention to pay out half its net profit to shareholders. Rosneft’s board of directors recommended a payout of dividends for 2020 amounting to 73.55 bln roubles after the April 22 meeting. The conference discussed items related to the annual general shareholders meeting of the company. The board of directors resolved to call Rosneft’s annual general shareholders meeting and vote in absentia on June 1, 2021. The record date for the list of eligible participants of the annual general shareholders meeting of Rosneft is May 7, 2021. The board of directors preliminarily approved Rosneft’s annual report for 2020 and recommended that the annual general shareholders meeting passes the resolution to pay dividends at 6.94 roubles per one share of Rosneft, thus using 50 percent of the company’s net profit, attributable to Rosneft shareholders. In 2020, Rosneft had a net profit of 147 billion roubles, down 79.1 percent than in 2019. However, the company’s move has been met with a positive market reaction, even amid the coronavirus pandemic, a decline in demand for hydrocarbons, and OPEC+ output cuts. The company’s profitability came essentially from its sales of a 10 percent share of the Vostok Oil project to Trafigura, a transaction worth €7 billion.
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