Azovstal Not to Pay Dividends for 2005

At its AGM on October 21, 2006 Azovstal’s (AZST: BUY) shareholders voted to direct 5% of the company’s 2005 earnings to the reserve fund and 95% of earnings to spend on development projects. The AGM also amended AZST’s charter to allow for the increase in the number of the company’s shares by 53.7% to 5.6 bln, which was earlier approved on AZST’s EGM on May 19, 2006. Last year, AZST posted sales of USD 2,417 mln (up 39% yoy), EBITDA of USD 378 mln (margin of 15.6%) and net income of USD 227 mln (margin of 9.4%).