Dividend policy

The dividend policy 
– is one of the most important components of corporate governance and a key indicator of the Company’s observance of its shareholders’ rights.

The Gazprom Neft PJSC Regulation on the Dividend Policy is designed to ensure that the mechanism used to determine the amount of dividends and the procedure for their payment is as transparent as possible for shareholders and all stakeholders and also describes the approach of the Company’s Board of Directors to preparing recommendations for the General Meeting of Shareholders on the amount of dividends to be paid on the Company’s shares, the date as of which shareholders must be registered to receive dividends and the procedure for their payment.

The main principles of the Gazprom Neft PJSC dividend policy are:

  • Ensuring the maximum transparency of the mechanism used to determine the amount of dividends and the procedure for their payment.
    • The Dividend Policy Regulation specifies the minimum amount of dividend payments on the Company’s shares – this amount must not be less than the largest of the following indicators:
      • 15% of the Gazprom Neft Group’s consolidated financial result as determined in accordance with IFRS;
      • 25% of the Company’s net profit as determined in accordance with RAS.
  • Compliance with the standards of the existing laws of the Russian Federation as well as the Company’s Charter and internal documents.
    • Each shareholder recorded in the shareholder register as of the date determined by the General Meeting of Shareholders at which the decision is made to pay dividends is entitled to receive dividends. This date may not be set earlier than 10 days from the date of the decision to pay (announce) dividends or 20 days later from the date of this decision.
  • Commitment to high corporate governance standards.
    • The Company adheres to the principle of ensuring positive dynamics in dividend payments, subject to growth in the Company’s net profit;
    • The approved Gazprom Neft PJSC Dividend Policy Regulation is posted on the Company’s official website, which also details the Company’s dividend payment history.

Dividend history

Dividend history of the Company
2011 2012 2013 2014 2015
Amount of dividends accrued per one share, RUB 7.3 9.3 9.38 (including dividends for H1 2013) 6.47 (including dividends for H1 2014) 6.47 (including dividends for H1 2015)
Total amount of dividends accrued per share of a particular category, RUB 34,611,487,365 44,094,086,643 44,473,390,614 30,676,208,664 30,676,208,664
Percentage of US GAAP/IFRS net profit , % 22 25 25 25 28
Compilation date of list of persons entitled to receive dividends 24/04/2012 23/04/2013 23/06/2014 22/06/2015 27/06/2016
Meeting date of issuer’s governing body at which the decision was made to pay dividends and the date and number of the minutes 08/06/2012 Minutes No. 0101/02 dated 14/06/2012 07/06/2013 Minutes No. 0101/03 dated 17/06/2013 06/06/2014 Minutes No. 0101/01 dated 06/06/2014 05/06/2015 Minutes No. 0102/18 dated 05/06/2015 10/06/2016 Minutes No. 0101/01 dated 14/06/2016
Deadline given for payment of declared dividends Before 07/08/2012 Before 06/08/2013 Before 28/07/2014 Before 27/07/2015 Before 01/08/2016
Form and other conditions of payment of declared dividends In cash form In cash form In cash form In cash form In cash form
Ratio of unpaid dividends to accrued dividends, Dividends not paid to shareholders who failed to provide data for the calculation of dividends in accordance with clause 5 of Article 44 of Federal Law No. 208-FZ dated 26 December 1995 ‘On Joint-Stock Companies’. Dividends accrued for shares belonging to unidentified holders are paid once the rights of the shareholders to the securities have been established. % 0.02 0.03 0.05 0.02 0.02

Comparison of total return

Shareholder’s total return Source: Company data, Moscow Exchange PJSC
2011 2012 2013 2014 2015 2016
Gazprom Neft Amount of dividends accrued per one share, RUB 7.3 9.3 9.38 6.47 6.47 10.68
Share price at start of period, RUB 130.47 150.80 143.75 147.67 142.00 152.90
Share price at end of period, RUB 148.18 142.52 146.77 143.00 153.95 214.00
TSR, % 19.2 0.7 8.6 1.2 13.0  46.9