Moscow, 28 June 2000; Sibneft president Eugene Shvidler has confirmed plans to pay an interim dividend on the company’s shares. Shvidler told shareholders attending the company’s annual general meeting held in Moscow today that the management will recommend that the board approve payment of dividends totaling around $50 million. The board is set to meet shortly to approve the plan and to decide on the exact size of the dividend.
Shvidler said that the move was aimed at building investor confidence. “We want our shareholders to be confident of making a good return on their investment in Sibneft equity. Our dividend policy will be designed to ensure that through a combination of capital gain and dividend payments, shareholders see an annual return on their investment of at least 20%.”
This will be the first time that Sibneft has made a dividend payment, and the company intends to pay dividends on an annual basis in the future. Sibneft yesterday unveiled record net profits for 1999 of $315.1 million, in accounts prepared to US GAAP standards.
The annual general meeting elected a new board of directors with the following members: Eugene Shvidler (Sibneft – President), Valery Oif (Sibneft – Vice-President), Konstantin Potapov (Sibneft – Vice-President), Eugene Poltorak (Sibneft - Vice-President), Irina Panchenko (Sibneft - Vice-President), Vladimir Novikov (Sibneft – Head of the Corporate Management Department), Igor Shpitonov (Russian Aluminium – Deputy Head of the Business Support Service), Ivan Kulakov (Oil Finance Co – General Director), Natalia Yatskevich (ALM law firm – Partner). Konstantin Potapov was elected chairman of the board at a meeting held following the end of the annual general meeting.
Shareholders representing 97.9% of the company’s voting shares attended the annual general meeting, which gave the green light to amendments to the company’s charter. The meeting also approved the company’s accounts and elected an audit commission.