TASS: CPC intends to maintain the practice of dividend payments in the future unless there are new large projects - Consortium’s General Director
CPC will pay out the first dividends - $665 mln - in summer and will be recommending another payout by autumn.
ST. PETERSBURG, 5 June /TASS/ CPC will pay the first dividends in the company’s history by mid-July - $665 mln for the 4th quarter 2020 and the 1st quarter 2021. By the next shareholder meeting scheduled for September, the company’s management will be recommending another payout - for the 2nd and 3rd quarters 2021. CPC General Director Nikolay Gorban told TASS about it on the sidelines of SPIEF.
“The Consortium starts paying dividends to the shareholders in the amount of $665 mln. The payment will be made in two tranches: next week and in a week. The payouts will be completed in the first ten-day interval of July. I’d like to remind you that CPC pays dividends for the first time in history, he said.
“We will have another meeting in September. It will be held in Aktau in Kazakhstan. By that time, we plan to recommend other dividend payouts (for the 2nd and 3rd quarters 2021 - TASS], the General Director added.
In accordance with CPC’s dividend policy, the Consortium will declare dividends quarterly, with the period of payments depending on the schedule of shareholders meetings. In the future the company plans to maintain the practice of dividend payments unless there are new large projects.
“Dividends will be recommended considering cash flow after deduction of spending. Unless, of course, we have some new large projects and the shareholders approve additional costs for them. No such projects are expected in the near future, except one that is already ongoing - the Debottlenecking Project (it is intended to increase the CPC pipeline’s throughput capacity up to 80 million tons by 2024 - TASS). We started its execution last year, the work is going on schedule”, said N. Gorban.
More than $600 million will have been spent on this project over five years, including activities in the Republic of Kazakhstan. The Project is being executed with the use of our own funds.
CPC is a pipeline system connecting Kazakhstan with a seaport near Novorossiysk, where tankers are loaded with oil for the supply to global markets. The 1,511 km long pipeline links oilfields in Western Kazakhstan with a marine terminal in Novorossiysk. CPC Marine Terminal is equipped with single point moorings that allow loading tankers safely at a significant distance offshore, also amid poor weather conditions.
Gorban earlier told journalists that CPC could start paying dividends already in 2021, after repaying, in 2020, the original shareholder debt from a loan for the construction of the pipeline system.
CPC shareholders are the Russian Federation (represented by the Russian State Property Agency — 24% and “CPC Company” — 7%) — 31%; Kazakhstan (represented by Kazmunaigaz) — 19% and Kazakhstan Pipeline Ventures LLC — 1.75%) — 20.75%; Chevron Caspian Pipeline Consortium Company — 15%, LUKARCO B.V. — 12.5%, Mobil Caspian Pipeline Company — 7.5%, Rosneft-Shell Caspian Ventures Limited — 7.5%, BG Overseas Holding Limited — 2%, Eni International N.A. N.V. — 2% and Oryx Caspian Pipeline LLC — 1%.
Transneft is a trust manager of 24% of CPC-R and CPC-K shares that are under state ownership and the owner of 100% of shares of CPC Company.