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    Russia's Novatek Raises Minimum Dividend

Summary

Novatek's two largest shareholders are Russian businessmen Leonid Mikhelson and Gennady Timchenko.

by: Joe Murphy

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Complimentary, Natural Gas & LNG News, Europe, Corporate, Exploration & Production, Financials, News By Country, Russia

Russia's Novatek Raises Minimum Dividend

Russia's biggest LNG exporter Novatek announced on December 18 that its board had approved an increase in minimum dividends from 30% to 50% of adjusted net profit, citing the company's strong operating and financial results as justification.

Novatek operates the 17mn metric ton/year Yamal LNG plant and is preparing to launch its second major LNG export plant, Arctic LNG-2, in 2023. The company also earns revenues from domestic gas sales.

Novatek's largest shareholders are CEO Leonid Mikhelson with 24.8%, board member Gennady Timchenko with 23.5%, France's Total with 16.5% and Russia's Gazprom with 10%, according to its latest quarterly report.

The new dividend policy will apply to payments from this year's earnings and "strengthen Novatek's investment case," the company said. It already distributed 48% of its profits in the first half of the year in dividends, or rubles 35.9bn ($481mn).