BoD of Samolet recommended not to pay final dividends for 2022

The board of directors of Samolet developer recommended not to distribute net profit and not pay dividends based on the results of 12 months of 2022. This is stated in message on the band’s official website. The final decision on this issue will be made on June 30, 2023 at the general meeting of shareholders.

Anton Yelistratov, head of Samolet Group of Companies PJSC, noted that “the decision of the board of directors reflects the continuing high level of uncertainty in the residential real estate market and is in line with the group’s conservative financial policy.” According to him, this measure is temporary and “is aimed at maintaining high financial flexibility, taking into account the extensive program of strategic development.” Mr. Yelistratov added that management plans to return to the issue of dividend payments in the third quarter of 2023.

At the start of trading today, June 8, the company’s shares on the Moscow Exchange fell by 4.5%. Prior to this news, the company’s shares were up 0.28%. By opinion BCS analysts, the decision of the board of directors was a “negative surprise” for investors. However, the promise to return to the issue of dividends neutralized the negative effect on Samolet shares.

At the end of April, the company published financial results for 2022. The developer reported an 85% increase in revenue, up to 172.2 billion rubles. At the end of May “Airplane” informed about its decision to conduct a buyback in the amount of up to 10 billion rubles. The buyback of own shares on the market will be carried out by a subsidiary of the group until the end of 2023.

Refusal to pay dividends is becoming a trend for Russian companies. Earlier, Gazprom, Polyus, Rusal, Norilsk Nickel, Interros, Mechel and others refused to pay dividends.

Read more about the situation on the market in the publication “Kommersant” “Dividends covered with sanctions”.

Polina Motyzlevskaya