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Irkutskenergo to pay out dividends


	Irkutskenergo

Capitalization: 3 495 071 073,72 $

Common shares
Price	0,73 $

Price changing
week	month	year
4,6%	19,3%	92,5%

29.06.10 10:53

The set dividend size provides for just a small yield, but the very decision to pay out dividends reflects improvements in genco’s corporate governance.

Irkutskenergo (RTS: IRGZ) is to pay out dividends for FY2009. A relevant decision was made on June 28 at the company’s AGM. The dividend size was set at RUB 0.19 per share. The genco did not make any dividend payments for FY2008.

We are upbeat on the genco’s move, even though the set dividend size implies just a small dividend yield. In total, the company is to direct 25% of net income to dividend payouts, a large figure for an electric utility company. In our opinion, the move evidences an improvement in company corporate governance and is probably related to the forthcoming IPO of Irkutskenergo’s majority shareholder, Eurosibenergo. Given that the company is not burdened with any investment commitments, its stock could become a reliable investment instrument with an acceptable dividend yield.

Kruglov Denis

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