Polish PKN Orlen Minority Shareholder Seeks Dividend Payment
First Published Tuesday, 29th May 2012 11:40 am - © 2012 Dow Jones
WARSAW -(Dow Jones)- A minority shareholder of Polish refiner PKN Orlen SA (PKN.WA) has filed a motion to have the state-controlled company pay out a dividend of 1.5 zlotys a share from 2011 net profit, or a total of 641.56 million zlotys ($185.34 million), PKN Orlen said Tuesday.
PKN Orlen shareholders gather Wednesday to vote on the distribution of the company's profit from last year boosted by the sale of the refiner's stake in Polish mobile phone company Polkomtel SA, the largest buyout in Poland's post-communist history.
ING Otwarty Fundusz Emerytalny, a Polish pension fund, which holds a 5.02% stake in PKN Orlen, said the refiner's financial situation allows for a dividend payout, adding that its management said last year the company intended to pay a dividend.
However, PKN Orlen's management has recommended not paying a dividend from 2011 net profit. Since 2005, the company has only paid a dividend for 2007, as the company was first reducing debt borrowed to acquire a refinery in Lithuania and now plans to invest in exploring for shale gas in Poland and in power plants.