Results: Time to tally dividends
June saw most energy sector companies hold their annual shareholders’ meetings, where new members were elected to their Boards of Directors and dividend payments were approved. Our AGM overview looks at the major players in Russia’s power industry.
RusHydroBoard of Directors: The board saw major changes. Its new members are RusHydro Management Board Chairman Nikolai SHULGINOV; Russian Deputy Minister of Economic Development Nikolai PODGUZOV; Polyus CEO Pavel GRACHEV; National Research University MPEI Rector Nikolai ROGALEV; and Far East Development Fund CEO Alexei CHEKUNKOV. Five directors were not reelected: former RusHydro CEO Evgeny DOD; First Deputy Minister for the Development of the Russian Far East Alexander OSIPOV; Head of the Republic of Khakassia Viktor ZIMIN; Rosneft Vice President Larisa KALANDA; and Russian Federation representative on the European Bank for Reconstruction and Development Board of Directors Denis MOROZOV.
Chairman of the Board: Yury TRUTNEV, Deputy Prime Minister of Russia and Presidential Plenipotentiary to the Far Eastern Federal District, reelected.
Dividends: Total dividend payments will exceed 15 billion rubles, 2.5 times last year’s payouts and a record for the company. Shareholders approved payment of 0.039 rubles on each ordinary share.
ROSSETIBoard of Directors: The board’s new members are Russian Deputy Minister of Energy Vyacheslav KRAVCHENKO; Russian Deputy Minister of Economic Development Nikolai PODGUZOV; RusHydro General Director and Management Board Chairman Nikolai SHULGINOV; Polyus Director for Energy Oleg DUBNOV; MPEI Rector Nikolai ROGALEV; and Vnesheconombank First Deputy Chairman Mikhail POLUBOYARINOV.
Four directors were not reelected: Russian Deputy Minister of Finance Andrei IVANOV; member of the Presidium of the Russian Academy of Sciences Alexei MAKAROV; Russian Federation representative on the European Bank for Reconstruction and Development Board of Directors Denis MOROZOV; and Alrosa Supervisory Board member Oleg FEDOROV.
Chairman of the Board: Russian Minister of Energy Alexander NOVAK, reelected.
Dividends: Shareholders voted to pay no dividends on 2015 results due to losses of 18.2 billion rubles under Russian accounting standards. Likewise, members of the Board of Directors will receive no remuneration for 2015. Shareholders did agree at the annual meeting to pay out dividends on privileged shares from net profits for the first quarter of 2016 (1.6 billion rubles in total, or 0.008 rubles per ordinary share).
Inter RAO UESBoard of Directors: At their annual meeting Inter RAO shareholders elected two new members to the Board of Directors: Boris AYUYEV, Chairman of the Management Board at SO UPS and a minority investor in Inter RAO and United Capital Partners Executive Director Elena SAPOZHNIKOVA. Two directors were not reelected: Pavel SNIKKARS, Head of the Department of Power Engineering Development at the Russian Ministry of Energy, and National Research University MPEI Rector Nikolai ROGALEV.
Chairman of the Board: Rosneft CEO and Management Board Chairman Igor SECHIN, reelected.
Dividends: On the basis of 2015 results, shareholders approved the largest dividend payout in the company’s history: 1.86 billion rubles, or 50 percent of last year’s net profits to Russian accounting standards. Dividend payments for 2014 totaled just 108 million rubles (25 percent of profits).
Federal Grid Company of Unified Energy SystemBoard of Directors: Four members of the Board of Directors at ROSSETI (the parent company) were elected. Besides ROSSETI CEO Oleg BUDARGIN and Management Board member Andrei DYOMIN, they included Deputy General Director for Finance Egor PROKHOROV and Deputy General Director for Capital Construction Sergei SERGEYEV. Four other directors were also newly elected: Head of the Department of Power Engineering Development at the Russian Ministry of Energy Pavel SNIKKARS; Nikolai ROSCHENKO, Head of the Legal Division at Market Council; Renaissance Broker Managing Director Igor KAMENSKOY; and Confindustria Russia
President Ernesto FERLENGHI.
Departing board members include Deputy Minister of Energy Vyacheslav KRAVCHENKO; RusHydro CEO Nikolai SHULGINOV; Gazprom Energoholding CEO Denis FEDOROV; and Boris KOVALCHUK, Chairman of the Management Board at Inter RAO.
Chairman of the Board: ROSSETI CEO Oleg BUDARGIN, reelected.
Dividends: Shareholders voted to pay out 16.977 billion rubles in dividends, or 95 percent of net profits for 2015 to Russian accounting standards (0.013 rubles per share).
E.ON RussiaBoard of Directors: Four E.ON representatives left the board and were replaced by top executives from Uniper: Klaus SCHÄFER, CEO; Christopher DELBRÜCK; Gunter RÜMMLER; and Patrick WOLFF. Another new face on the board is Anna BELOVA, a professor with the Higher School of Economics.
Chairman of the Board: Klaus SCHÄFER, CEO and Management Board member at Uniper.
Dividends: At their AGM, E.ON Russia shareholders approved dividend payments of 12.4 billion rubles for 2015, or 0.197 rubles on each ordinary share (80 percent of last year’s net profits under Russian accounting standards). The remaining 3.1 billion rubles will be retained by the company.
Name change: On June 29, E.ON Russia’s Board of Directors approved a change in the company’s name, to Unipro PJSC.
QuadraBoard of Directors: The big story here was the arrest of former RusHydro CEO Evgeny DOD one week before the AGM, on accusations of fraud (later changed to embezzlement). Despite this, shareholders reelected him to the board of the thermal generation company at their annual meeting and he was subsequently elected chairman. Moscow’s Basmanny District Court removed DOD from the position in July.
Chairman of the Board: ONEXIM Group Deputy CEO Michael SOSNOVSKY was elected Chairman of the Board at Quadra on August 15.
Dividends: Shareholders voted not to pay dividends for 2015. Last year, the company reported net losses of 4.4 billion rubles to Russian accounting standards, 11.6 percent more than in 2014.
Enel RussiaBoard of Directors: Board turnover was close to 50 percent. The new members are Enel representatives Marco PROIETTI (Head of Operational Performance Optimization of Global Generation); Giovanni BERTOLINO (Head of Industrial Development – Global Generation Business Development); and Alexandra BURCEA (manager with the Eastern Europe Planning & Control unit), plus Denis MOSOLOV, Senior Vice President, Macquarie Infrastructure & Real Assets (Europe), and Alexander WILLIAMS, Director at Taiga Capital (UK).
Chairman of the Board: Stephane ZWEGUINTZOW (Head of External Relations at Enel Russia), reelected.
Dividends: Shareholders opted to pay no dividends in light of losses totaling 48.6 billion rubles in 2015, versus 5.6 billion rubles in net profits the previous year. Difficult macroeconomic conditions were cited as the reason.
Fortum (Russia)Board of Directors: Two new candidates were elected to the board, Fortum representatives Arto RÄTY and Risto PENTTINEN. The departing directors were Fortum Corporation Senior Vice President HR Jarl Mikael FRISK and Talia KHABRIEVA, Director of The Institute of Legislation and Comparative Law under the Government of the Russian Federation.
Dividends: Shareholders took the decision to pay no dividends for 2015 on ordinary shares. This is generally believed to reflect a 15 percent drop in revenues at the Russian arm of Finland’s Fortum group, to 893 million euros. The company likewise paid no dividends for 2014.
OGK-2Board of Directors: Shareholders at OGK-2 elected a new Gazprom representative to the Board, Roman ABDULLIN, Deputy Head of Division 816, replacing Gazprom CFO Alexander IVANNIKOV. Denis KULIKOV, advisor to the Executive Director of the Association of Institutional Investors, also joined the board, replacing Sergei YEZHOV, who heads the Department of Competitive Procurement at Gazprom Mezhregiongaz.
Chairman of the Board: Gazprom Energoholding Director General Denis FEDOROV, reelected.
Dividends: The decision was taken to pay out 600.3 million rubles in dividends on ordinary shares, based on results for 2015, or 0.006 rubles per share. This is equivalent to 20 percent of net profits for the year under Russian accounting standards.
At their annual meetings, shareholders in Moscow Integrated Power Company, T Plus, TGK-14, Lenenergo and RAO ES EAST also voted to pay no dividends on results for 2015.