SIBUR-Neftekhim not to pay 2001 dividends

Shareholders of SIBUR-Neftekhim petrochemical company (Nihni Novgorod) approved a decision of the Board of Directors not to pay 2001 dividends due to losses. At the same time, new regulations concerning the distribution of profit in 2002 that were proposed by the Board of Directors haven't been approved. General Director of SIBUR-Neftekhim Petr Nikitin was quoted as saying that this issue would be considered at a special shareholders meeting at the end of summer 2002, i.e. after the arbitration court of the Yamalo-Nenets region of Russia decides to instigate bankruptcy proceedings against SIBUR - a co-owner of SIBUR-Neftekhim.

According to an annual financial report approved by shareholders, sales proceeds amounted to 3,779,348,000 rubles (about $120.4m) in 2001 (148% against 2000), prime cost - 3,222,252,000 rubles (about $102.6m) (137.9%), gross profits increased 2.6 times to 557,096,000 rubles (about $17.7m), profits from sales - 119,876,000 rubles (about $3.8m) (127.9%), balance losses - 93,146,000 rubles (about $2.97m), balance profits - 60,091,000 rubles (about $1.9m), net losses - 107,135,000 rubles (about $3.4m), net profits - 50,879,000 rubles (about $1.62m). Nikitin pointed out that the company's losses were the result of "economic collapse and negative situation on the foreign oil market." At the same time, the company suffered major losses due to a rapid increase of gas prices and the adjustment of wages at SIBUR-Neftekhim's factories in 2001.

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