ALROSA Supervisory Board recommends H1’21 dividends of 100% FCF

Our contacts

Moscow Office

115184, Ozerkovskaya nab., 24

E: info@alrosa.ru

T: +7 (495) 620-92-50
+7 (495) 411-75-25

August 30, 2021 – At the meeting held on 26 August, the Board recommended allocating dividends for H1 2021 in the amount of RUB 64.7 bn, or RUB 8.79 per share, which is equal to 100% of the free cash flow1 for H1 2021. 

In accordance with ALROSA’s Dividend Policy, the Supervisory Board recommended the General Meeting of Shareholders to distribute as dividends 100% of the Company’s free cash flow (FCF) for H1 2021. The dividends payable will amount to RUB 64.7 bn, or RUB 8.79 per share.

“A sustainable year-to-date recovery in demand for diamonds and diamond jewelry translated into a a quick improvement in our financials performance and profitability. This meant that in 2021 we were already able to pay out record-high dividends, distributing RUB 70.3 bn for H2’20 in Q3’21. Our financial health enables us to allocate the Company’s entire free cash flow of RUB 64.7 bn on dividends for H1 2021. If the shareholders approve the dividend recommendation, the total cash payments in 2021 will reach as high as RUB 135 bn, which exceeds the total dividends paid for 2018 and 2019,” said Sergey Ivanov, ALROSA's Chief Executive Officer and Chairman of the Executive Committee.

In accordance with the laws, the Extraordinary General Meeting of Shareholders will take place on 30 September 2021. The recommended record date for dividends is 19 October 2021.

For reference:

In March 2021, ALROSA’s Supervisory Board approved a new version of the Company’s Dividend Policy and updated the methodology for determining the amount of dividends. In accordance with the IFRS, ALROSA’s H1 2021 FCF amounted to RUB 64.7 bn, with Net Debt2 / EBITDA3 standing at minus 0.2x as at 30 June 2021.

Dividends accrued for the period, RUB bn

Dividends_1H2021_en

*ALROSA paid no dividends for H1 2020 due to a negative free cash flow. 

_____________________

[1] Free cash flow (FCF) is the operating cash flow calculated in accordance with the International Financial Reporting Standards (IFRS) net of capital expenditure (posted as Purchase of Property, Plant and Equipment in the consolidated IFRS statement of cash flows).

[2] Net debt is calculated on an IFRS basis as the amount of debt less cash and cash equivalents as well as bank deposits at each reporting date.

[3] EBITDA stands for the Group’s earnings or loss for the last 12 months adjusted for income tax expenses, financial income and expenses, share of net profit of associates and joint ventures, depreciation and amortisation, impairment and disposals of property, plant and equipment, gain or loss on disposal of joint ventures, revaluation of investments, and one-off items.

 

This page was last updated on 30 August 2021 at 16.50