On 29 November 2013, the ALROSA Supervisory Board met in Yakutsk with the addition of Ms Olga Dergunova, the head of Rosimushchestvo (Federal Agency for the State Property Management) and Mr Egor Borisov, the President of the Republic of Sakha (Yakutia).
The Board discussed the results of ALROSA’s international IPO. The shareholders declared it successful, noting that it was the largest offering of local shares ever listed on the Moscow Exchange. Moreover, this was the largest public offering by a mining company worldwide since June 2011, and the first public offering of a Russian state company in the natural resource sector in the past seven years.
The Supervisory Board also voted to approve amended regulations on the dividend policy. Accordingly, ALROSA will pay a dividend worth at least 35% of the net profit (calculated under IFRS consolidated financial statements).
Previously, the minimum level of dividend under the 2011 dividend policy was 10% of net profit (under the Russian Accounting Standards).
In the past, dividend policy was guided by the company’s financial indicators and the volume of dividend recommended by the RF Government for state companies. Specifically, ALROSA paid a record-setting dividend of RUB 8,175 billion for 2012. This was 24.3% of the company’s net profit under IFRS, or 32.5% of the net profit under RAS net of financial investment revaluation.
ALROSA has been able to increase the dividend level following a successful development strategy and increasing financial security.