Break-even companies encourage shareholders to pay out profits. NLMK's dividends are regularly credited to investor accounts. Even in the difficult years for the economy - 2008 and 2014 - the company's management decided to share with shareholders.
Securities
According to the Charter posted on the company's website, the capital of the Novolipetsk Metallurgical Plant is divided into 5 billion 993 million 227 thousand 240 ordinary uncertified shares. 84% of this volume belongs to the Cyprus offshore company Fletcher Group Holding. The remaining 16% are freely traded on the Moscow and London exchanges.
Starting in 2006 at the Moscow MICEX venue with a price of 64 rubles, the rally survived ups to 133 in June 2008 and to 151 in January 2011; a sharp drop to 15 in November 2008 and a long descent to 36 in March 2014. For three years the asset has been in a growth phase. In mid-January 2018, the price reached 154 rubles, which is slightly higher than the 2011 maximum.
On the London Stock Exchange, NLMK's ruble-denominated receipts in rubles equaled the rate of shares in circulation in Moscow: at noon on January 15, the price was 154 rubles. 79 kopecks
payment history
The company's charter provides for the payment of remuneration to shareholders from net profit. Until 2014, dividends were accrued to NLMK shares once or twice a year. Since 2015, shareholders once a quarter at extraordinary meetings decide on the use of the net profit of PE and the free cash flow of PSDs for shareholder income.
Formally, the dividend policy reads:
- If the quotient of the Net Debt / EBITDA division does not exceed 1.0, then the amount is assigned within 1/2 PE and 1/2 SDP.
- If the result of the Net Debt / EBITDA operation is greater than 1.0, then dividends are accrued within 30% of emergency and 30% of PSD.
In fact, NLMK paid dividends in free cash flow in the amount of:
- In 2016 - 80%.
- In 2017 - 100%.
EBITDA is profit before tax and depreciation.
Net debt is a segment of total debt that cannot be repaid by selling off property. It is calculated as the difference between the amount of short-term and long-term debt and the value of liquid assets.
Free cash is cash that is not burdened with the obligation to pay taxes and place investments.
For a detailed study of the “Net Profit” and EBITDA parameters, it is useful to go to the issuer's website in the “Regulatory Disclosure of Information” section and read the multi-page financial reports.
Payment Procedure
The decision to accrue dividends to NLMK is made by the shareholders meeting taking into account the recommendations of the board of directors. Quarterly rewards for commitment and patience are considered at EGM - extraordinary fees. Annual accruals are approved by the AGM. According to established practice, if the board of directors proposes, then the meeting approves the proposal.
Dividends, according to the Charter, are transferred in money to the account of the holder of securities. It is possible to pay remuneration with property.
Initially, the meeting of shareholders holds the closing date of the register of shareholders. According to the law, cut-off is made within 10-20 calendar days from the date of approval of the decision of the meeting on payment.
For example, on December 22, 2017, an EGM took place, where they decided to distribute money according to the results of the 3rd quarter. In this case, the interval was formed for the cutoff from 12/31/2017 - 01/10/2018. By the decision of the meeting, the cut-off date is 01.01.2018.
The term for payment of accrued capital is 25 business days from the date of closing of the register of shareholders to receive money from the issuer's profit. In this example, the deadline will be 12/12/2018.
If by the indicated date the transfer to the shareholder’s current account does not occur, then the person has the right to apply for payment of remuneration until 01/09/2021.
The nearest date
Information on the results of 2017, including for the 4th quarter, according to the financial calendar, is expected to be posted in March.
The nearest NLMK dividend payments are expected in June:
- for the first quarter of 2018 by decision of the EGM;
- for the 4th quarter of 2017 by decision of the AGM.
A person who decides to receive passive income from the results of investing in securities of Russian issuers needs to decide: a high percentage with high risk or a low percentage with little risk.
Enterprises tend to work not only for profit, but also at a loss, and go bankrupt. Therefore, small, comparable to bank deposits, dividend percentages are prudently preferable to high-risk investments.
According to the intermediate results, NLMK’s statistics are as follows:
- 1st quarter - 2.24%; 2.35 rubles, taking into account the cost as of June 14, 104.81 rubles.
- 2nd quarter - 2.41%; 3.20 rubles from the price of October 12, 132.58 rubles.
- 3rd quarter - 3.69%; 5.13 rubles as applied to the exchange rate on January 9, 149.25 rubles.
Interest is shown in the appendix to the closing price on the cut-off day.
Certificate of Issuer
NLMK is a leader in production volumes among metallurgical companies in the global economy. The group includes a dozen enterprises and organizations. Participants produce sheet and long products.
NLMK is used in the electric power industry, for example, transformer steel; in automotive and shipbuilding; on railways and for the manufacture of mining equipment.
Corporation production facilities are located in the Russian Federation:
- 100% raw materials segment;
- 94% steelmaking sector;
- 58% rolling production.
Consumers from 70 countries buy products. Inside Russia, the group sells 37% of the goods.