Sual Partners Asserts Rusal’s Capability for Dividend Payout
Sual Partners, the largest minority shareholder of Rusal, has expressed the belief that Rusal’s financial status is robust enough to allow for dividend payments. This perspective was conveyed to TASS by representatives of Sual Partners.
Dividend Payments and Company’s Financial Stability
Sual Partners highlighted that dividend payments, as per the policy agreed by the shareholders of UC Rusal, would not jeopardize the company’s financial stability. This stance is reinforced by the fact that UC Rusal is anticipated to receive approximately $410 million in dividends from MMC Norilsk Nickel for the first nine months of 2023.
Defending Minority Shareholder Rights
Furthermore, Sual Partners has committed to continuing its efforts to defend the rights of minority shareholders in UC Rusal. The company aims to enhance corporate governance quality within Rusal. Sual Partners criticizes the spread of unverified rumors by Rusal-friendly entities about potential plant closures and the suspension of the environmental modernization program, which is currently at the planning stage.
Rusal’s Market Performance and Financial Health
Contrary to these rumors, UC Rusal’s audited financial statements indicate a stable position in global export markets, increased sales in Asia and Russia, and a high credit rating with a stable outlook, as noted by Sual Partners.
Enquiry Sent to Rusal
In response to these developments, TASS has sent an enquiry to Rusal for comments.
Rusal’s Dividend Policy and Recent Vote
Rusal’s dividend policy includes the potential for payments amounting to 15% of the company’s adjusted EBITDA, including dividends received from Norilsk Nickel, contingent upon compliance with loan agreements and maintaining financial liquidity. However, a majority of Rusal shareholders recently voted against paying dividends for the first nine months of 2023.
Rusal’s Economic Challenges and Modernization Program
The Aluminium Association has previously indicated that Rusal might freeze or shut down several operations due to the challenging economic environment and increased taxation. These factors could also impact the extensive eco-modernization program of aluminium smelters in various Russian cities, with a total cost of 380 billion rubles.
Rusal’s Global Operations and Revenue Distribution
Rusal, the largest aluminium producer outside China, owns 11 aluminium smelters across Russia, Sweden, and Nigeria. The company’s first-half 2023 report showed an increase in sales revenue from Asia, with shifts in revenue distribution across the Americas, Europe, and CIS countries.
Company Debt and Investment Plans
Despite the current challenging market conditions and a relatively high debt load, Rusal maintains its commitment to a significant investment program, including the environmental modernization of its plants.