Dividend policy

The dividend policy is one of the most important components of corporate governance and a key indicator of the Company’s observance of its shareholders’ rights.

The Gazprom Neft PJSC Regulation on the Dividend Policy is designed to ensure that the mechanism used to determine the amount of dividends and the procedure for their payment is as transparent as possible for shareholders and all stakeholders and also describes the approach of the Company’s Board of Directors to preparing recommendations for the General Meeting of Shareholders on the amount of dividends to be paid on the Company’s shares, the date as of which shareholders must be registered to receive dividends, and the procedure for their payment.

The main principles of the Gazprom Neft PJSC dividend policy are:

  • ensuring the maximum transparency of the mechanism used to determine the amount of dividends and the procedure for their payment:
    • the Dividend Policy Regulation specifies the minimum amount of dividend payments on the Company’s shares – this amount must not be less than the largest of the following indicators:
      • 15% of the Gazprom Neft Group’s consolidated financial result as determined in accordance with IFRS;
      • 25% of the Company’s net profit as determined in accordance with RAS;
  • compliance with the standards of the existing laws of the Russian Federation as well as the Company’s Charter and internal documents;
    • each shareholder recorded in the shareholder register as of the date determined by the General Meeting of Shareholders at which the decision is made to pay dividends is entitled to receive dividends. This date may not be set earlier than 10 days from the date of the decision to pay (announce) dividends or 20 days later from the date of this decision;
  • commitment to high corporate governance standards;
    • the Company adheres to the principle of ensuring positive dynamics in dividend payments, subject to growth in the Company’s net profit;
    • the approved Gazprom Neft PJSC Dividend Policy Regulation is posted on the Company’s official website, which also details the Company’s dividend payment history.

Dividend history

Company’s dividend history
Indicator 2013 2014 2015 2016 9M 2017 20 April 2018. The Company’s Board of Directors recommended that the General Meeting of Shareholders pay dividends of RUB 15 per share (taking into account previously paid dividends for the first 9 months of 2017).
Amount of dividends accrued per one share, RUB 9.38 (including dividends for H1 2013) 6.47 (including dividends for H1 2014) 6.47 (including dividends for H1) 10.68 10.0
Total amount of dividends accrued per share of a particular category, RUB 44,473,390,614 30,676,208,664 30,676,208,664 50,637,080,144 47,412,996,390
Percentage of US GAAP/IFRS net profit 25 25 28 25 25
Compilation date of list of persons entitled to receive dividends 23/06/2014 22/06/2015 27/06/2016 26/06/2017 29/12/2017
Meeting date of issuer’s governing body at which the decision was made to pay dividends and the date and number of the minutes 06/06/2014 Minutes No. 0101/01 dated 10/06/2014 05/06/2015 Minutes No. 0101/01 dated 09/06/2015 10/06/2016 Minutes No. 0101/01 dated 14/06/2016 09/06/2017 Minutes No. 0101/01 dated 14/06/2017 15/12/2017 Minutes No 0101/02 dated 20/12/2017
Deadline given for payment of declared dividends before 28/07/2014 before 27/07/2015 before 01/08/2016 before 31/07/2017 before 12/02/2018
Form and other conditions of payment of declared dividends In cash form In cash form In cash form In cash form In cash form
Proportion of dividends paid in the total amount of announced dividends for shares of this category (type) (%) 99.99 99.99 99.96 99.98 99.99

Comparison of total return

Shareholder’s total return in 2017 Source: Company data, Moscow Exchange PJSC
Indicator Gazprom Neft LUKOIL Rosneft Tatneft NOVATEK
Price at start of period (03/01/2017), RUB 222.60 3,575.00 419.50 445.20 783.00
Price at end of period (29/12/2017), RUB 244.10 3,334.50 291.50 478.80 677.70
Growth in market value, % 9.7 (6.7) (30.5) 7.5 (13.4)
Dividends 10.68 195.00 5.98 22.81 13.90
Dividend yield, % 4.8 5.5 1.4 5.1 1.8
TSR, % 14.5 (1.3) (29.1) 12.7 (11.7)