Page 146 - RusRPTJun24

On May 23, Inter RAO shareholders approved dividends for 2023 in the amount of 0.326 rubles. per share (+14.9% y/y). The dividend yield to the current price is 7.5%. In total, the company will allocate 34bn rubles for payment. (25% of net profit according to IFRS). The dividend cut-off is set for June 3.
Rusal's Board of Directors recommended not paying dividends for 2023.
The decision, in our opinion, is expected, in particular, due to the company's high debt burden against the backdrop of declining EBITDA and plans to implement the investment program. As of the end of 2023, Rusal's Net Debt/EBITDA ratio was 7.4x versus 3.1x at the end of 2022. The company last paid interim dividends for 1H22, the dividend amount was $0.02/share. The company's dividend policy involves paying dividends in the amount of 15% of the adjusted amount. EBITDA subject to compliance with the requirements of credit agreements, financial liquidity and other company restrictions.
The board of Russian metals major MMK (Magnitogorsk Steel and Iron Works) recommended a dividend of RUB 2,752/share for 2023. As followed by bne IntelliNews, MMK is sanctioned by the UK, the US, while in March 2022 the EU imposed a ban on imports of a wide range of steel products from Russia as part of the sanctions for the latter's military invasion of Ukraine. Rashnikov is also subject to sanctions. Notably, while in 2021 metals companies were top dividend payers in Russia, boasting double-digit dividend yields, they are now among the first ones to cancel their payments after the sanctions. MMK, Severstal and NLMK have all said they won’t pay dividends for 2021. MMK also said in June 2022 it would pause its investment programme. But, if approved, the total dividend payout for 2023 will be about RUB31bn ($0.3bn), which would make 100% of free cash flow in 2023 and in line with MMK’s dividend policy.
146 RUSSIA Country Report June 2024 www.intellinews.com