Mechel Will Not Pay Annual Dividend - Shares Fall SlightlyStephanie Stanton (Author) Published Date : May 30, 2014 01:25 ET
American depository shares in Russian metal and mining company Mechel OAO (MTL) slid slightly on Friday morning after it announced that it had decided not to pay an annual dividend on ordinary shares. Shares were down 1.43% to $2.07 in mid-morning action. The company has recommended paying an annual dividend of 0.05 rubles per one preferred share (approximately $0.0015 per one preferred share and $0.0007 per one preferred ADR). The company reported that the board had recommended to Mechel OAO's general shareholders' meeting to divide part of the unallocated profit from the previous years. It said that this would involve the allocation of 6,937,845.75 rubles (approximately $202,387.57) for payment of dividends for listed preferred shares. It would leave 90,416,010,077.27 rubles (approximately $2,637,573,222.79) unallocated. The announcement comes four days after Mechel announced the appointment of Andrey Slivchenko as new chief financial officer, replacing Stanislav Ploschenko who previously held the title. Eight days ago the company unveiled its annual results for 2013 which revealed a 19% decrease in consolidated revenue as compared to 2012. The group said that the major factor contributing to this was the 23 % decrease in the steel segment's revenue due to the group's disposal of unprofitable assets (Romanian facilities) and interruption of supplies from third parties due to the end of Mechel's partnership with Estar plants.
Mechel Will Not Pay Annual Dividend - Shares Fall Slightly