Dividends

Dividend policy

The dividend policy is a critical component of corporate governance and the key indicator of how the company observes the rights of its shareholders. Gazprom Neft PJSC’s Dividend Policy (revised version dated 29 December 2020) is designed to ensure maximum transparency in the dividend calculation and payment procedure to all stakeholders, including shareholders. It determines the company Board of Directors’ approach to developing recommendations for the General Meeting of Shareholders with respect to calculating the amount of dividend to be paid on the company shares, setting the record date, and establishing the dividend payment procedure.

Pursuant to the revised version of the Policy, the dividend payment target amounts to at least 50% of the company’s net profit determined on the basis of Gazprom Neft Group’s consolidated financial statement (IFRS). Net profit could be offset by:

  • foreign exchange gain (loss) recognised in financial income and expenses;
  • exchange rate differences on operations-related items;
  • impairment loss (reversal of impairment loss) on property, plant and equipment and construction in progress;
  • impairment loss (reversal of impairment loss) on investments in associated organisations and joint ventures;
  • aggregate revaluation of financial investments;
  • other adjustments as resolved by the Board of Directors.

The recommended amount of dividend payments is determined by the Board of Directors, taking into account the company’s financial standing, as well as duly agreed financial needs of the company.

Each shareholder included in the shareholder register as at the date established by the General Meeting of Shareholders, at which resolution on dividend payment is adopted, is entitled to dividends. In addition, such date may not be set earlier than 10 days and no later than 20 days from the date the resolution on payment (announcement) of dividends is made.

The approved Gazprom Neft PJSC Dividend Policy is available on the company’s official website, which also provides the company’s dividend payment history.

Despite the challenging economic environment due to the fall in oil prices, as well as the decline in demand for energy resources under the COVID-19 pandemic, the company’s efficient and timely response turned its net income to the positive side in Q2 2020. The company’s financial result was on the rise over three consecutive quarters of 2020. That trend in net profit growth allowed the Board of Directors to recommend the payment of an interim dividend to Gazprom Neft shareholders, which underpins the company’s commitment to maintain the balance between implementing its strategic goals and the interests of its owners.

Dividend history

The company’s dividend history
Index 2016 2017 2018 2019 9 months 2020
Dividends per share (₽) 10.68 15.0 30.0 37.96 5.0
Total dividends (₽) 50,637,080,144.0 71,119,494,585.0 142,238,989,170.0 179,979,734,296.0 23,706,498,195.0
Total dividends paid out (₽, %) 50,636,890,886.0
(99.99%)
71,118,331,325.0
(99.99%)
142,236,616,411.0
(99.99%)
179,976,587,812.0
(99.99%)
23,705,787,385.0
(99.99%)
Share of net profit (IFRS, %) 25.0 28.0 38.0 50.0 H1 2019 – 40%; H2 2019 – 50%. 50.0
Record date 26 June 2017 26 June 2018 01 July 2018 26 June 2020 29 December 2020
Date of the meeting of the issuer's governing body, at which a resolution to pay dividends was adopted (date and minutes reference) 09 June 2017
Minutes no. 0101/01 of 14 June 2017
09 June 2018
Minutes no. 0101/01 of 13 June 2018
14 June 2019
Minutes no. 0101/02 of 18 June 2019
11 June 2020
Minutes no. 0101/01 of 15 June 2020
18 December 2020
Minutes no. 0101/02 of 21 December 2020
Dividend yield (2020)Calculated on the basis of dividends announced throughout 2020, and the share price as at 3 January 2020. Benchmarked against: Rosneft, LUKOIL, Tatneft, NOVATEK, and Surgutneftegas. (%)
Index Gazprom Neft Company 1 Company 2 Company 3 Company 4 Company 5
Dividend yield 6 6 4 2 1 1