By Polina Devitt and Anastasia Lyrchikova MOSCOW, Oct 26 (R
By Polina Devitt and Anastasia Lyrchikova
MOSCOW, Oct 26 (Reuters) – Russia’s Norilsk Nickel GMKN.MM ought to preserve its dividend to a minimal this 12 months, greatest shareholder Vladimir Potanin instructed Reuters, as the corporate contends with the coronavirus disaster and a possible $2 billion environmental damages invoice.
Potanin’s Interros holding, aluminium producer Rusal 0486.HK and another stakeholders have a dividend settlement that means Nornickel pays them twice a 12 months.
The settlement means the corporate can not refuse to pay dividends, however Interros considers it needed to scale back the quantity to a minimal “on this troublesome 12 months”, Potanin mentioned on Monday.
Rusal’s deputy chief govt echoed the sentiment, despite the fact that the corporate depends on dividends from its 27.8% stake in Nornickel.
“Within the present state of affairs, we share a cautious strategy,” Maxim Poletayev instructed Reuters.
Nornickel’s board of administrators will contemplate a nine-month dividend fee at its subsequent assembly on Nov. 3, it mentioned in a regulatory assertion.
Along with the hit from the pandemic, which has led some sector rivals to scale back dividends, Nornickel suffered a gasoline spill at an Arctic energy plant in Might, for which Russia’s environmental watchdog needs the corporate to pay about $2 billion in damages.
After the spill, Potanin, who owns a 34.5% stake, proposed a cap on the 2020 dividend at $1 billion.
Nornickel’s internet revenue fell to $45 million within the first half because it put aside $2.1 billion for the environmental harm declare.
Interros understands, nevertheless, that Nornickel’s dividend funds are essential for the state finances by way of dividend tax funds and for workers who personal shares within the mining big and look at the dividends as assured household revenue, Potanin mentioned.
Nornickel has greater than 100,000 particular person shareholders, together with most of its employees.
The state finances has acquired greater than 100 billion roubles in dividend tax from Nornickel’s shareholders over the previous 5 years, Potanin added.
($1 = 76.4250 roubles)
(Reporting by Polina Devitt and Anastasia Lyrchikova Enhancing by Jason Neely and David Goodman)
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