Rosneft plan to increase dividends to shareholders, after the government increased the cash targets of the state-owned companies. The Board of Directors of the largest oil producer in Russia proposed to pay dividend, which is 35% from the profit in 2015, representing an increase to 11.75 rubles per share. The total amount of the dividends is 124.5 billion rubles, which is equal to 1.87 billion USD and represent change in dividend policy to pay 25% of net profit. Last year the payment to shareholders of Rosneft amounted to 8.12 rubles per share.
Russia’s desire to get more funds from state companies comes amid a collapse in oil prices, which melt revenue in a time when the country is facing a budget deficit. The approaches of the government to deal with lower revenues include cost reduction potential sale of assets and making money from guarantee funds.
The Annual General Meeting of Shareholders of Rosneft will be held on June 15 in St Petersburg. The largest shareholder into the company is the Russian government with 69.5% through its Rosneftgas enterprise. Another major shareholder is BP with 19.75%.
Rosneft is an integrated oil company majority owned by the Government of Russia. Rosneft is headquartered in Moscow’s Balchug district near the Kremlin. The company became Russia’s leading extraction and refinement company after purchasing assets of former oil giant Yukos at state-run auctions. In March 2013, Rosneft became the largest publicly traded oil company, after buying TNK-BP. The market capitalization of the Russian largest oil producer is 51.52 billion USD.