Paying competitive dividends has historically been a priority for NAFTA-OIL. The Company has been consistently increasing the amount of dividends per share for over 20 years.
On December 12, 2019 meeting of the Board of Directors of NGK “NAFTA-OIL” the decision was made to amend the Regulations on the Dividend Policy of NGK “NAFTA-OIL”. The amendments are based on the main principles of the dividend policy approved by the decision of the Board of Directors on October 16, 2019.
MAIN PRINCIPLES OF DIVIDEND POLICY
- The total amount of dividends on the Company’s issued shares, excluding the shares held by NAFTA-OIL Group entities, equals at least 100% of the Company’s adjusted free cash flow.
- The adjusted free cash flow is calculated on the basis of NGK “NAFTA-OIL” consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and is determined as net cash provided by operating activities less capital expenditures, interest paid, repayment of lease obligations, and expenses for purchase of Company’s stock.
- Dividend per share is rounded to the nearest Russian rouble.
- Dividends are paid twice a year with the amount of interim dividends calculated based on the consolidated financial statements for the six-month period.
DIVIDEND PER ORDINARY SHARE, RUBLES
DIVIDEND PAYMENTS FOR 2018
| Dividends accrued in |
Dividends based on |
Dividends per share, RUR | Total dividends announced, RUR | Record date |
|---|---|---|---|---|
| 2019* | the first nine months of 2018 | 95 | 71,250,000,000 | 21 Dec 2018 |
| 2019** | for 2018 | 155 | 116,250,000,000 | 09 July 2019 |
| Total | 250 |
*Dividend payments to nominee shareholders and trust managers who are professional market participants registered in the shareholder register of PJSC “LUKOIL” to be made not later than 11 Jan 2019,
Dividend payments to other persons registered in the shareholder register of NGK “NAFTA-OIL” to be made not later than 01 Feb 2019.
**Dividend payments to nominee shareholders and trust managers who are professional market participants registered in the shareholder register of NGK “NAFTA-OIL” to be made not later than 19 July 2019,
Dividend payments to other persons registered in the shareholder register of NGK “NAFTA-OIL” to be made not later than 09 Aug 2019.
TAXATION OF DIVIDENDS ACCRUED ON PJSC LUKOIL DEPOSITARY RECEIPTS
• Different tax rates are applied to the dividends being distributed. If dividends are distributed based on DR ownership, the applied income tax rate depends on whether consolidated information has been disclosed to the tax agent as prescribed by the Russian Tax Code. In order to comply with the above requirements, international custodian banks, brokers or other agents (hereinafter referred to as the Intermediary Agents), acting on behalf of the beneficial holders registered as of the date of making the list of persons entitled to dividends (register closure date for dividend distribution), shall submit the relevant information to the Depositary bank, including the number of depositary receipts, country of tax residence, rate set forth in the relevant double taxation agreement, and information as to whether such beneficial holders are entities or individuals.
• The above information shall be prepared by the Intermediary Agents based on the documents that are available to them (including tax residence certificates) and shall be submitted to the Depositary Bank. The information submitted by the Intermediary Agents is consolidated by Citibank, acting as the Depositary Bank for NGK NAFTA-OIL DR programs to be then forwarded to the tax agent (Sberbank of Russia).
• For further information concerning DR dividend payments please see the contacts below or visit CITIBANK N.A. website:
119607 , Moscow , Ramenki Street, Building 8 Building 1, Apartment 4, Russia Federation
