Annual Report 2015


Share capital and dividends

Share capital

The Russian Federation is the founder of and sole shareholder in Russian Railways. The Russian Government exercises shareholder powers on behalf of the Russian Federation.

The charter capital of Russian Railways was formed by the founder through the contribution of the property and assets of federal railway transportation organisations.

As of the end of 2015, Russian Railways had total charter capital of RUB 2,091.21318 bln split into 2,041,213,180 common registered shares in uncertificated form with par value of RUB 1,000 each and 50,000,000 preferred registered shares with par value of RUB 1,000 each.

The Company’s charter capital was increased by a total of RUB 73,238,838,000 in 2015, including:

  • by RUB 64,280,838,000 through the placement of common shares with par value of RUB 1,000 each in accordance with Order No. 995-r of the Russian Government dated 29 May 2015;
  • by RUB 8.95 bln through the placement of common shares with par value of RUB 1,000 each in accordance with Order No. 2666-r of the Russian Government dated 24 December 2015.

Report on the distribution of net profit earned in 2014

Russian Railways generated a loss of RUB 44.1 bln in 2014.

The Company’s approved financial plan for 2014 envisaged net profit of RUB 182 mln.

Dividends were paid as part of previously planned parameters in the amount of RUB 45 mln, which amounts to 25% of the Company’s planned profit for 2014 (Order No. 1233-r of the Russian Government dated 30 June 2015).

Projected distribution of the Company’s net profit earned in 2015. Dividends.

Russian Railways had net profit of RUB 317.9 mln in 2015.

In accordance with clause 42 of Section 6 of the Russian Railways Charter, the Company must establish a reserve fund amounting to 5% of the net profit of the reporting year (RUB 15.8 mln).

Dividends on Russian Railways common shares for 2015 will be paid in accordance with a directive of the Russian Government.

The Company will spend RUB 5,000,000, or 0.01% of the par value of preferred shares, which amounts to RUB 50,000,000,000.

The dividend policy of Russian Railways is based on the balance of the interests of the Company and its shareholders as it relates to determining the amount of dividend payments, specifically:

  • enhancing the Company’s investment appeal;
  • strict observance of shareholder rights as envisaged by the legislation of the Russian Federation.
Indicator 2011 2012 2013 2014
Net profit 16.8 14.1 0.7 –44.5
Reserve Fund 0.8 0.7 0.03 0
Accrued dividends 4.2 0.0 0.185 0.045
Accrued dividends. % of revenue 25.0 0 25