Klaipėdos Nafta BoD offers to spend 100 percent of profit on dividends
The management board of KN (AB Klaipėdos Nafta), the oil and liquefied natural gas (LNG) terminal operator, offers to pay EUR 17 million in dividends to the company’s shareholders – 100% of the last year’s net profit, EUR 0.045 per share. KN says this decision was made taking into account the fact that last year KN achieved good performance results that beat expectations.
According to KN’s dividend pay-out policy, the board is entitled to establish the amount of annual dividends based on the company’s financial indicators and the implementation of KN’s strategy. According to the unaudited financial statements, in 2017 KN generated EUR 106.5 million in sales revenue, a growth of 2.5% compared with 2016. During the reporting period EBITDA was EUR 31.3 million, an increase of 10.2% year-on-year (EUR 28.4 million).
“We are a joint-stock company, and KN not only seeks to operate profitably but also aims to increase value for its shareholders, among which is the state. The company exceeded the profit targets of 2017 as well as targets included in KN’s strategy. The company increased return on equity and maintained stable cash flows, which allowed us to accumulate a substantial cash reserve. Seeking to make the company’s operations more effective and generate a higher return for shareholders, the board of KN offers to spend the whole profit earned in 2017 on dividends,” says CEO of KN Mindaugas Jusius.
As part of the implementation of the company’s strategy, in 2017 KN allocated the largest share of its investment to the expansion of the Klaipėda Oil Terminal – the installation of new storage tanks – and the construction of an LNG station. Total investment made up EUR 32.9 million in 2017. KN completed the first investment stage of development projects included in the company’s strategy for 2016-2020 and started the works of the second stage. The company has a sufficient investment reserve for the implementation of investment projects included in the strategy.
The proposal of KN needs the approval of the company’s shareholders. The general shareholders meeting is scheduled to be held on 27 Aril 2018.
The members of KN’s board are Mantas Bartuška and Dainius Bražiūnas, including independent members Giedrius Dusevičius and Bjarke Pålsson.
The state owns 72% of the company’s shares.
