Russia's Novatek Boosts Dividends for 2019

The board of Russia's Novatek has approved plans to pay rubles 18.10/share ($0.23) in dividends from its profits in the second half of 2019, the gas producer said on March 23.

This means the company will distribute rubles 32.33/share from its full-year income, or 24% more than it did from its 2018 profits.  This amounts to a total payout of rubles 98.1bn ($1.2bn), or 40% of Novatek's net profit last year of rubles 245bn. It paid only 34% of its rubles 233bn income in 2018 to shareholders.

Shareholders will vote on the proposal in an annual general meeting on April 24.

Novatek's proposal to increase payments to shareholders comes as some international oil companies cut or suspend their dividend programme to bolster cash reserves following the steep decline in oil prices.