Debt management and stable dividends
- Dividend payout according to stated dividend policy
- Medium-term net debt level below US$4,000 million
- Target average net debt/EBITDA at 2.0x throughout the cycle
Following the successful deleveraging efforts of recent years, EVRAZ has a renewed focus on returning value to shareholders and further managing its debt. In 2018, robust free cash flow of US$1,940 million allowed the Group to significantly decrease its net debt.
During the reporting period, EVRAZ returned a total of US$1.6 billion to its shareholders in the form of dividends for a dividend yield of 17%, establishing a new record for the Company.
In 2018, EVRAZ announced an updated dividend policy envisaging returning at least US$300 million to shareholders each year, provided that the Group’s net debt/EBITDA ratio remains below 3.0x. Going forward, the remaining free cash flow after implementing investment programme can be distributed as dividends. Even in the events of a market correction and weaker profitability, EVRAZ remains committed to its long-term average net debt/EBITDA at 2.0x , which will allow the Group to maintain its stated dividend policy.
US$ million | 2018 | 2017 | 2016 | 2015 |
---|---|---|---|---|
Dividends | 1,556 | 430 | 0 | 0 |
Shares buyback | 0 | 0 | 0 | 336 |
Total | 1,556 | 430 | 0 | 336 |
Yield | 17 % | 9 % | 0 | 12 % |