Centrenergo to pay UAH 0.52 in DPS

At their general meeting on April 25, shareholders of power GenCo Centrenergo (CEEN UK) voted to distribute 50% of its 2016 profit, or UAH 193 mln, in dividends, the company reported the same day. This implies UAH 0.524 in dividends per share and a 5.0% dividend yield. Shareholders approved the company’s 2016 results with net income of UAH 387 mln, according to the report. A 50% dividend payout for all companies with a state stake (like Centrenergo) was stipulated by an early March resolution of the Ukrainian government.

Alexander Paraschiy: The results approved at the AGM are discouraging given that Centrenergo had published 1.6x higher net income before the meeting (which should have resulted in DPS of UAH 0.85). At the same time, we see that the decreased dividend payment (which is considered by the company as an additional tax) is logical is light of its tough position at the moment. Two of its three power plants are idle due to a lack of coal caused by a blockade of occupied Donbas, and the company is seeking expensive imported coal to make these plants operational again.