The Economic Development and Trade Ministry of Ukraine plans to start privatization of large state-owned enterprises (SOE) from the sale of Centrenergo, First Deputy Minister Maksym Nefyodov has said. “Centrenergo could be the first test case, and other facilities would follow it,” he said at a roundtable entitled “Ukraine on the Way of Privatization” in Kyiv on Wednesday.
Acting Head of the State Property Fund of Ukraine (SPF) Vitaliy Trubarov said that after Centrenergo, it is likely that other power supply companies would be privatized. He also said that the start of the privatization of large companies is planned for this autumn.
Shareholders in Ukraine’s major electric and thermal energy producing company Centrenergo have approved the payment of dividends for 2017 in the amount of UAH 1.418 billion, or UAH 3.84 per share. Centerenergo will pay UAH 1.1 billion in dividends to the state alone on the results of financial and economic activities in 2017,” Acting head of the State Property Fund Vitaliy Trubarov wrote on Facebook. He recalled that the state owns a 78.2% stake in Centrenergo.
Under the law, the funds should be transferred to the national budget before July 1 this year, he said.
According to the minutes of the shareholders’ meeting, it was decided to allocate 75% of net profit to pay dividends, while for 15% will be spent on replenishment of the reserve fund, and another 10% on the production development fund.
As reported, Centrenergo in 2017 increased its net profit by 4.9 times (by UAH 1.504 billion) compared to 2016, to UAH 1.891 billion. The company’s revenue grew by 2.1%, to UAH 10.919 billion, and its total value of assets increased by 17.4%, to UAH 10.074 billion. The minutes also said that Centrenergo’s undistributed profit had amounted to UAH 2.966 billion as of the beginning of 2018.