Lukoil changed its dividend policy

The board of directors of Lukoil on October 16 approved new principles of the dividend policy, according to which 100% of the adjusted free cash flow (free cash flow, FCF) minus treasury shares will be used to pay shareholders. about this with reference to the press service of the company RBC writes .

• FCF will be calculated according to Lukoil's IFRS financial statements and will be defined as net cash from operating activities minus capital expenditures, interest paid, repayment of lease obligations.
• Dividends will be paid to shareholders twice a year - according to the results of the first half of the year and for the year as a whole, said in a statement . Lukoil
• Against the backdrop of the news, Lukoil's shares on the Moscow Exchange grew by 3.17%, by 15:30 Moscow time one share was worth 5.777 rubles.

At the end of 2018, Lukoil sent less than 30% of its net profit (161 billion rubles) to dividends, which a company representative in an interview with RBC called "lagging behind competitors." The current dividend policy did not provide sufficient flexibility and did not allow to effectively respond to changes in the external environment, for example, to limit oil production under the OPEC+ agreement, the source added.