Rosneft to Raise Dividend Payment to 25% Net Profit

Rosneft, Russia’s largest oil company, is ready to increase dividend payments to 25 percent of net profit, CEO Igor Sechin said on Friday.

“We will try [to increase dividend payment],” Sechin told Russian President Vladimir Putin, after Putin asked if Rosneft could raise dividend payments to 25 percent of the company’s net profit.

The Russian oil giant will hold an annual shareholders meeting on June 20 where the dividend payment increase is likely to be approved. The payments would increase the dividend to 36.564 billion rubles ($1.129 billion), i.e. 3.45 rubles ($0.106) per share. Rosneft’s 2011 net profit jumped 19.7 percent year-on-year to $12.452 billion to US GAAP.

Rosneft’s shares on the Russian stock market rose on news the company is to raise dividend payments. As of 15:22 Moscow time [11:22 GMT], Rosneft shares were up 1.5 percent to 200.12 rubles on the MICEX-RTS stock exchange.

 

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