On 3 September, the Board of the international energy company Ignitis Group approved a new dividend policy of the company. This policy envisages a consistent increase in returns to shareholders.
Under the new dividend policy of Ignitis Group, dividends of EUR 85 million will be proposed for the financial year 2020. For each subsequent financial year, dividends will be at least 3 percent higher than the amount paid for the previous financial year.
On 3 September, the Board of Ignitis grupė also decided to propose to the shareholder a decision on the allocation of interim dividends of EUR 42 million for the first half of 2020 at the forthcoming Extraordinary General Meeting of Shareholders.
“The company's new dividend policy is in line with the goals set by Ignitis Group in creating value for its shareholders. In our long-term business strategy, we have emphasized the goal of maintaining the sustainable financial position of Ignitis grupė and ensuring growing dividends in line with the company's growth rate by investing intensively in development”, says Darius Maikštėnas, Chairman of the Board and CEO of Ignitis Group.
The company's dividend policy was updated after the Government approved the draft resolutions setting the amount of dividends for Ignitis Group submitted by the Ministry of Finance.
In the renewed long-term business strategy presented in June 2020, Ignitis Group plans to modernize the managed energy infrastructure of strategic importance to the country, thus ensuring the resilience and efficiency of the electricity and gas distribution network.
Ignitis Group will also develop additional flexible generation capacities, if necessary in order to balance the growth of production from renewable energy sources and to ensure the required level of adequacy of the Lithuanian energy system.
The development of green production remains one of the most significant priorities of the Group's sustainable development. By creating value for shareholders, Ignitis grupė aims to develop green energy generation with an installed capacity of 4 GW by 2030. Onshore and offshore wind, waste energy, biofuel and solar projects are also relevant to the Group.
About Ignitis Group:
Ignitis Group is one of the largest international utilities and renewable energy companies in the Baltic region. Its core business activities are operating electricity and gas distribution networks, as well as expanding green generation portfolio. The Group also manages strategically important flexible generation resources and provides customers and solutions services, such as supply of electricity and gas, solar, e-mobility, energy efficiency and other innovative energy smart platforms for households and businesses. Ignitis group operates in its home markets – Lithuania, Latvia, Estonia, Poland and Finland – as well as evaluates opportunities in other countries on energy transition path.