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Gazprom can allocate 40% of net profit to 2020 dividends, says Deputy CEO

According to the dividend policy of Gazprom, if the debt burden is above 2.5 for the net debt/EBITDA ratio, the Board of Directors can recommend lower dividends

MOSCOW, December 22. /TASS/. Gazprom can allocate 40% of their net profit under International Financial Reporting Standards (IFRS) to 2020 dividends, Deputy CEO Famil Sadygov said in an interview with the corporate magazine.

According to the dividend policy of Gazprom, if the debt burden is above 2.5 for the net debt/EBITDA ratio, the Board of Directors can recommend lower dividends.

"The debt burden will obviously be above 2.5 as of 2020 year-end due to the decline in global oil and gas prices. However, we will recommend the Board of Directors not to use surpassing of the debt burden limit as a formal cause to reduce the dividend payment amount. We consider possible to pay 40% of adjusted net profit in full conformity to the dividend policy," Sadygov said.

The corporate dividend policy anticipates the transition to paying at least 50% of IFRS net profit as dividends, from 2021, the top manager added.