Naftokhimik Prykarpattya To Direct 50% Of 2006 Profits In Dividends

At its AGM on Friday, May 25, Naftokhimik Prykarpattya (NAFP) said it will distribute 50% of its 2006 profits to dividends (DPS of USD 0.073 and dividend yield of 1.48%). The company’s net income in 2006 came to USD 1.9 mln, down 8x from 2005. Vladimir Nesterenko: Naftokhimik requires around USD 100 mln in CapEx to modernize its diesel production facilities by 2009, of which USD 40 mln is to be invested in 2007. Given the drop in profits and substantial CapEx requirement, the decision to pay dividends seems odd and suggests Privat group is considering selling the refinery.