BAKU, Azerbaijan, June 11
By Nargiz Sadikhova - Trend:
On 10 June 2021, Caspian Pipeline Consortium (CPC) paid out the first-ever tranche of dividends to its shareholders for 4Q2020 and 1Q2021, Trend reports citing the CPC.
The total amount of dividends payable for that period is $665 million. Some $548 million was distributed to the CPC shareholders in the first tranche (net withholding tax based on Russian tax law). The remaining $117 million will be distributed in the second tranche during the first ten-day interval of July 2021.
The dividend payout on CPC shares was enabled and started after full repayment of the shareholder debt earlier outstanding from the construction of the Tengiz-Novorossiysk pipeline system and the execution of an expansion project on the oil pipeline. CPC paid out the last $990 million portion of the debt in 2020 early owing to its stable financial performance.
The size of dividends is planned to be declared quarterly, based on CPC’s financial policy. Thus, the size of dividends for 2Q and 3Q2021, as well as their payout schedule will be determined at a shareholder meeting in Aktau (Kazakhstan) in September 2021. The number of dividends will be recommended based on the company’s profit net of cost.
The CPC Pipeline System is one of CIS's largest energy investment projects that involves foreign capital. The length of the Tengiz – Novorossiysk pipeline is 1,511 km. This route moves over two-thirds of all Kazakhstan export oil along with crude from Russian fields including those in the Caspian region. CPC Marine Terminal is equipped with three Single Point Moorings (SPM), allowing tankers to be loaded safely at a significant distance offshore, including in poor weather conditions
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