Gazprom Shares Rise on Increase to Proposed Dividend

05/14/19 11:32 AM EDT

By Adam Clark

 

Gazprom PJSC (GAZP.RS) shares soared in Moscow on Tuesday after the Russian oil-and-gas giant raised its proposed annual dividend.

The management committee has endorsed a payout of 393.2 billion rubles ($6.0 billion) in total, or RUB16.61 a share, increased from the previous proposal of RUB10.43 a share.

Gazprom didn't say why it had raised the proposed dividend, only noting the payout was based on its operating results for 2018 when its net profit rose to RUB1.46 trillion from RUB714.3 billion the prior year.

The new dividend is more than double the RUB8.04 a share that Gazprom paid out in respect to 2017. Gazprom previously said it had passed the peak of its investment cycle and it will now focus on improving its free cash flow.

The dividend remains subject to shareholder approval. At 1314 GMT, Moscow-listed shares were up 15% at RUB187.

 

Write to Adam Clark at adam,clark@dowjones.com

 

(END) Dow Jones Newswires

May 14, 2019 11:32 ET (15:32 GMT)

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