The head of “Turboatom” threatened to stop production due to the payment of dividends

Глава "Турбоатома" пригрозил остановкой производства из-за выплаты дивидендов

General Director of JSC “Turboatom” Victor Subbotin believes that the requirement for the Cabinet to pay 50% and 90% of the income as dividends on a share of the state stake in the company may lead to a stop of the enterprise.

“An urgent problem that faces today “Turboatom” is a requirement of the Cabinet to pay 90% of the income as dividends on a share of the state stake in the company,” said Subbotin.

He stressed that “Turboatom” is one of the most successful machine-building enterprises of Ukraine: the level of profitability is more than 40%, with 50% of net profit paid as dividends on the state share of the stake, that is 287 million.

“The Cabinet has decided to increase this proportion to 90%, and it is still 230 million UAH, which the plant must pay for the week. No such money. If we assume that this amount will be deducted compulsorily, it will inevitably lead to stop production, and hence the failure of the contracts and joint projects “Turboatom” and “Electrotyazhmash”, – said the General Director.

According to him, the enterprise in order to remain competitive in the global markets need to constantly upgrade production. The modernisation, which was carried out at the plant, which is more than $70 million, was carried out without attraction of credits, at their own expense. That is why the “Turboatom” it is necessary that the share of profit payable on dividends, posted the financial plan approved by the Cabinet of Ministers for the year 2019.

“Turboatom” – the only Ukrainian producer of turbine equipment for hydro, thermal and nuclear power plants. The geography of deliveries of the enterprise covers 45 countries in Europe, Asia, America and Africa.

By the end of 2018 “Turboatom” increased its net profit by 7.6% by 2017 – up to 764,3 m UAH, net income by 10% to 2.62 billion.

As of the second quarter of 2019 the state, represented by state property Fund of Ukraine owns more than 75,22% of the shares. Largest minority shareholder (of 15.34% stake) is a venture investment Fund “Seventh” AMC “Svarog asset Management” associated with the businessman Konstantin Grigorishin. Even 5,598% owned by a Cyprus-registered Biscone Ltd.

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