When shaping our dividend policy, we are guided not only by strict observance of legal requirements, but also the need to ensure an optimum balance between shareholders’ interests, the Company’s business needs, and the need to enhance its investment attractiveness and capitalisation.
For the purpose of increasing shareholder value, the Company is constantly working over issues on improving financial transparency, including with respect to dividend payments. Currently Federal Grid is on target to synchronise calculation of a dividend base taking into account the RAS requirements and in accordance with IFRS.
All the dividend policy principles, mechanisms for determining the size of dividends, procedure, period and form of dividend payment are set in the Regulations on Dividend Policy of Federal Grid Company approved by the Board of Directors in 2010.
The General Meeting of Shareholders resolves on dividend payment based on recommendations of the Board of Directors. The recommended dividend pay-out amount is determined by the Board of Directors on the basis of the Company’s financial results and with due account for the Federal Law “On Joint Stock Companies’ No. 208-FZ dated 26 December 1995 and the RF Government Resolution No. 705-r dated 18 April 2016.
The full text of the Regulations on Dividend Policy is
available on the corporate website www.fsk-ees.ru Section Shareholders and Investors
The table below shoes the profit distribution and dividend payment in accordance with the resolutions of the Annual General Meetings of Shareholders:
- 2011 AGM (for 2010) – Minutes No. 11 dated 4 July 2011
- 2012 AGM (for 2011) – Minutes No. 12 dated 2 July 2012
- 2013 AGM (for 2012) – Minutes No.13 dated 2 July 2013
- 2014 AGM (for 2013) – Minutes No. 15 dated 30 June 2014
- 2015 AGM (for 2014) – Minutes No. 16 dated 30 June 2015
2011–2015 Net Profit Distribution, RUB thousand
| for 2010 (2011 AGM) | for 2011 (2012 AGM) | for 2012 (2013 AGM) | for 2013 (2014 AGM) | for the 1st quarter of 2014 ( 2014 AGM) | for 2014 (2015 AGM) | |
|---|---|---|---|---|---|---|
| Retained net profit (loss) for the reporting period: | 58,088,388 | –2,468,359 | –24,501,917 | - 25 897 521 | 1,210,472 | 4,699,940 |
| Reserve Fund | 2,904,419 | - | - | - | - | 256,837 |
| For development | 18,578,192 | - | - | - | - | - |
| Dividends | 2,577,664 | - | - | - | 436,803 | 847,383 |
| Covering losses from prior years | 34,028,113 | - | - | - | - | 3,595,720 |
Federal Grid Dividend History
| 2011 (for 2010) | 2012–2014 (for 2011 – 2013) | 2014 (for the 1st quarter of 2014) | 2015 (for 2014) | |
|---|---|---|---|---|
| Total amount of dividends declared, RUB mln | 2,577.7 | No dividends were declared for 2011, 2012 and 2013 | 436.8 | 847.4 |
| Dividend per share, RUB. | 0.21 | 0.034 | 0.0006647883 | |
| Share of net profit allocated for dividends, % | 4.44 | 36 | 25* | |
| Date of declaration | 29.06.2011 | 27.06.2014 | 26.06.2015 | |
| Date of actual payment | 29.08.2011 | 25.07.2014** 20.08.2014*** | 30.07.2015** 20.08.2015*** | |
| * taking into account dividends paid for the 1st quarter of 2014 ** to nominees and trustees *** to other persons registered in the Shareholder Register of Federal Grid Company |
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2015 Dividends
In accordance with Clause 2 of Article 42 of the Federal Law “On Joint Stock Companies” and Clause 7.5 of Article 7 of Federal Grid Company’s Articles of Association, dividends shall be paid out from the Company’s net income determined under the Company’s accounting statements.
Resolution on 2015 dividend payment will be made by the Annual General Meeting of Shareholders that will be held in 2016.