Centrenergo may pay UAH 1.42 bln in dividends in 2018

Power DisCo Centrenergo (CEEN UK) generated UAH 1.891
mln net profit in 2017, or 4.9x higher yoy, according to its AGM announcement
published on Feb. 27. The company is calling an AGM for March 30 at which
shareholders will consider dividend payments from the company’s 2017 profit.

Alexander Paraschiy: As a
state-controlled company, Centrenergo will have to distribute dividends in line
with state regulations on dividend payouts. Last year, it paid 50% of its net
profit, while this year, the Cabinet may increase the payout ratio to 75%,
according to the draft Cabinet resolution published by the Economy Ministry
(the resolution has yet to be adopted, to our knowledge). If this resolution is
approved, Centrenergo will pay UAH 1,418 mln in dividends this year, or UAH
3.84 per share. This implies a dividend yield of 23.6%, based on yesterday’s
closing price of CEEN. This confirms our positive view on Centrenergo as one of the most generous dividend payers for
this year.