Ukraine state companies may increase dividend payments in 2018

Ukraine’s Economy
Ministry has drafted a Cabinet resolution to oblige companies with a state
stake to distribute 75% of their 2017 net profit in dividends next year,
Interfax-Ukraine reported on Dec. 11. This year, such companies were obliged to
pay 50% of their 2016 net income in dividends.

In 10M17, Ukraine’s
State Property Fund received UAH 917 mln in dividends from the companies in
which it had stakes, of which 44% was received from power turbine producer
Turboatom (TATM UK), 17% from power GenCo Centerenergo (CEEN UK) and 38% from
the 25% stakes (privatized this year) in Dniproenergo and Dniproobenergo.

Alexander Paraschiy: This is a natural outcome of the revised income of the 2018 state
budget, which assumes an increase in revenue from enterprises in which the
state has its stake. The news is encouraging for the minority shareholders of
state-controlled Centrenergo and Turboatom, which will likely remain the
biggest dividend payers next year.