INTER RAO UES The Board of JSC Inter RAO approved the new edition of the Dividend Policy of JSC Inter RAO and consolidated cost management program at an absentee meeting on June 30, 2014.
The main changes to the Dividend Policy of JSC Inter RAO concern the dividend calculation rules. For example, there is a new provision that the Board will target the annual dividend payout ratio of 25% of consolidated IFRS net income when making dividend recommendations for the Annual General Meeting. Inter RAO is trying to offer competitive dividend income to its shareholders. The previous edition of the dividend policy targeted dividend payout of at least 5% of RAS net income.
The Board also approved the 2014-2016 consolidated cost management program for the key assets of Inter RAO Group. Expected impact of this program in 2015 and 2016 was calculated using the scenario parameters and the forecast for social and economic development of Russia, and tariff caps for infrastructure service providers for 2015 and 2016-2017 plan developed by Russian Ministry of Economic Development in May 2014.
This program is looking to ensure that specific fixed costs increase slower than inflation, and to reduce variable costs of the Group from 2013 levels. Target reduction rate for fixed costs is 2% per year for 2014-2016, or 6% over the three-year period. This program should generate 17.1 billion rubles of savings, including 5.0 billion rubles in 2014.
Fixed cost reduction initiatives are expected to contribute 6.55 billion rubles and include labor cost optimization, review of the motivation system and optimization of headcount, repair program and general expenses.
Variable cost reduction initiatives are expected to generate 10.55 billion rubles of savings and include negotiating lower fuel costs, switching to independent suppliers, optimizing fuel mix through increased utilization of higher efficiency units, optimizing coal inventory, reducing fuel consumption and reducing internal electricity consumption.
The Board also reelected Deputy Minister of Energy Vyacheslav KRAVCHENKO as the Head of Strategy and Investment Committee of the Board.
* * *
Inter RAO Group is a diversified energy holding serving various segments of Russian and international electric power industry. The Group is the leading exporter and importer of electricity in Russia actively increasing electricity generation and sales, and developing new lines of business. The corporate strategy of Inter RAO is focused on making Inter RAO a global energy enterprise and a key player in the global energy market. Inter RAO Group owns and operates over 34.3 GW of installed power generation capacity.
|
distributed by
|
