Tatarstan President: Record-breaking dividends of Tatneft Oil Company is a good signal for the market

On December 22, summing up the results of 2017 at a regular meeting with regional and federal journalists, Rustam Minnikhanov said that Tatneft Oil Company received the record-breaking dividends for nine months of 2017 due to its good economic indicators and plans to double company’s capitalization.

Speaking about Tatneft Oil Company, Minnikhanov noted that the company has set a task to double its capitalization in the next seven-eight years.

“We need to carry out optimization, comply with international standards of reporting, introduce new technologies, lean production and many other things. But one of the main criteria is economic efficiency of work, income and dividend policy,” Tatarstan President said.

The Tatneft has good market indicators for market, good profit and works efficiently. Minnikhanov called a high payout of dividends “a good signal for the market”.

Tatneft Oil Company will pay out record-breaking dividends in an amount of 75 per cent for nine months of 2017.  Interim payments will amount to 2,778 per cent of nominal value or 75 per cent of the net profit for this period (82.2 billion roubles). The Board of Directors of the companydetermined the dividend amount based on the results of the work and the estimated net cash flows.

Due to the successful implementation of the Strategy 2025 the cash flow is higher than expected, providing overall funding of the company’s investment programme, fulfilling all the undertaken commitments, including social obligations, meeting working capital needs and high shareholders’ dividend returns.