MMC “Norilsk Nickel” will calculate dividends based on a floating rate, calculated as the share of EBITDA linked to the level of debt. It is reported TASS with reference to the Executive Director of the company Pavel Fedorov.
“The question of changing the format of dividend payments was informally agreed with key stakeholders and found their support. Let’s wait for the decision of the Board of Directors, but surprises should not be,” he said. The new approach will begin after the payment of annual dividends in 2015.
The dividend will be 30% EBITDA, if the ratio of net debt to EBITDA at the end of the year will be more than 2.2. If the ratio is less than 1.8, the dividend will be 60%. Until 2022 the minimum level of payments will reduce by half to $1 billion a year. Now the shareholders are paid 50% of EBITDA, but not less than $2 billion.
“Cumulative dividends will be divided into final and intermediate payments. The interim dividend will be about 30% of the aggregate of the dividend and will be paid in the first quarter of the year following the year for which there is a charge,” said Fedorov. According to the forecast of Norilsk Nickel in the coming year the ratio of debt to EBITDA will grow, but will not exceed 2.5 a new approach to the dividend, he said.
EBITDA of Norilsk Nickel by the end of 2015 decreased by 24% and amounted to slightly less than $4.3 billion, according to a press release of the company reporting 2015.