Cabinet wants firms with state stake to pay 50% of income as dividends

Обзоры по компаниям и отраслям 23.04.2014 The Ukrainian government has amended its regulation to increase the dividend payout ratio up to 50% of their 2013 income for the companies where the state has a stake, Interfax-Ukrayina reported on April 22. Before that, the ratio was 30%. In other news, shareholders of Kyivenergo (KIEN UK) decided that the company will pay 30% of its 2013 income in dividends, implying a UAH 2.8 DPS and a 29% dividend yield. AGMs of other electricity companies where the state has 25%+ stakes are scheduled for this week: Zakhidenergo (ZAEN UK) on April 24, Centrenergo (CEEN UK) on April 25, Donbasenergo (DOEN UK) on April 26 and Dniproenergo (DNEN UK) on April 28. Alexander Paraschiy: As soon as the amended government regulation is published, Zakhidenergo, Centrenergo and Donbasenergo may be required to adjust their dividend payout policy this year to pay 50% of their 2013 profits to shareholders. If so, Centenergo will have to pay UAH 0.66 in DPS (implying a dividend yield of 11%) and Donbasenergo will have to pay UAH 11.24 in DPS (implying a yield of 25%). Yesterday, the stock market only partially accounted for the possible increase in their dividend payouts, adjusting CEEN’s price by UAH 0.14 (vs. an expected increase in DPS by UAH 0.26 compared to the assumption of a 30% payout) and DOEN’s price by UAH 3.47 (vs. a possible addition in DPS of UAH 4.50). Power GenCo Dniproenergo may pay UAH 117 in DPS to yield 27%, while Zakhidenergo should pay UAH 22.6 to yield 6%. The power turbine producer Turboatom (TATM UK) and the oil company Ukrnafta (UNAF UK) may also become generous dividend payers this season, but at the moment no information is available on whether they will convene their AGMs this year. Announcements at their shareholder meetings, if any, will be a powerful driver of their stocks’ prices.