MOSCOW, July 5 (RIA Novosti) - Oil major Sibneft is to pay out roughly $2.3 billion in dividends for 2004, a company record. Experts say this may also indicate that the company will soon be sold, writes the Gazeta daily.
Sibneft's board of directors recommended to the annual shareholders' meeting that last year's dividends be paid at 13.91 rubles per share. At the current exchange rate ($1=28.8), the company will make dividend payments of approximately $2.3 billion, or 96% of undistributed profits. In 2003, Sibneft's dividends totaled about $1.3 billion.
In May, the board was of an entirely different opinion regarding dividend payments. At a non-quorate annual meeting on June 28, company shareholders were set to approve a decision not to pay any dividends for 2004.
One reason for the board's sudden change of heart is that Sibneft is being readied for sale, and its co-owners, including main shareholder Roman Abramovich, governor of the remote northeastern region of Chukotka, have gone for additional income from the company in the form of dividends. Sources close to Gazprom have repeatedly said that the gas giant is negotiating the purchase of at least a controlling stake in Sibneft. The deal may be clinched within the month.
The fact that Sibneft will soon change its majority shareholders is also confirmed by the resignation of Konstantin Potapov, chairman of the board and vice president.
Apart from Abramovich's interests, some of the company's profits may also go to Yukos, which controls 34.5% of Sibneft stock. Yukos may receive about $793 million in dividends. However, this money will be used to pay off the company's tax arrears.
In November last year the Chukotka Arbitration Court forced Yukos to hand over 14.5% of Sibneft stock to its former owners in exchange for 8.8% of its own stock. Yukos has been unable to comply because the Sibneft stake it owes has been seized.
Sibneft produced a total of 45 million tons of oil in 2004.
