Ukrnafta AGM appoints CEO, approves of UAH 14.6/share dividend for 2010

Ukrnafta (UNAF UK) held an AGM on Friday, with 95.2% of shareholders present. Shareholders voted in a new CEO, Belgian Peter Van Hekke, previously CEO of Renaissance Capital Ukraine. The AGM also voted to distribute 30% of the UAH 2.6 bln income in 2010 as dividends, amounting to UAH 14.64 per share. The company decided to allocate the remaining 70% of its 2009 and 70% of its 2010 profits into development. Antonina Davydenko: The appointment of a western CEO is a clear step toward the government’s announced plans to create a vertically integrated oil company (VIOC) on the basis of Ukrnafta, with a subsequent IPO on a western stock exchange. The decision to plough back profits is also in line the formation of a VIOC as the new company will require major investments. The EGM on March 22 should shed additional light on the VIOC.