Shareholders of Novolipetsk Metallurgical Plant (NLMK (MCX: NLMK)) have approved the payment of dividends for the 2nd quarter in the amount of 4.75 rubles per share, the company said. The register for their receipt will close on October 12.
The total amount of payments will be $ 400 million (132% of the company's free cash flow for this period).
Dividends for the 1st quarter amounted to 3.21 rubles per share.
According to NLMK's dividend policy, the company pays out 100% of free cash flow (FCF) to shareholders with a net debt / EBITDA ratio of less than or at the level of 1x. If the leverage is more than 1x, 50% of the FCF will be allocated for payments to shareholders. The Group uses a normalized investment rate of $ 700 million per annum to calculate free cash flow for dividend payments, even if the actual investment is higher than this level.
NLMK's net debt / EBITDA ratio at the end of the 2nd quarter was 0.79x.
NLMK's authorized capital is divided into 5 billion 993 million 227 thousand 240 ordinary shares with a par value of 1 ruble each.