OREANDA-NEWS. The LUKOIL Board of Directors on Wednesday, October 16, approved the new principles of the dividend policy, which provides for the payment to shareholders of at least 100% of the adjusted free cash flow minus treasury shares. This was reported by the press service of the company.

The adjusted FCF will be calculated according to the IFRS consolidated financial statements of LUKOIL and will be determined as net cash received from operating activities, net of capital costs, interest paid, repayment of lease obligations, as well as expenses for the purchase of LUKOIL shares, the company’s message explained. Dividends will be paid twice a year - based on the results of the first half of the year and the whole year.

At the end of 2018, LUKOIL allocated less than 30% of net profit on dividends, that is, “there is a lag behind competitors,” the Russian media source said. Until recently, the dividend policy didn't provide sufficient flexibility and didn't allow to respond effectively to changes in the external environment, such as, for example, restrictions on oil production in the framework of the transaction with OPEC and the countries that joined it (OPEC+), he added.