PJSC 'Novorossiysk Commercial Sea Port': The Board of Directors of NCSP Group recommended to send 98% of net profit for 2018 to dividends

Press Release

The Board of Directors of NCSP Group recommended to send 98% of net profit for 2018 to dividends

May 22, 2019

NCSP Group (LSE: NCSP, MOEX: NMTP) hereby announces that on May 21, the Board of Directors of PJSC NCSP, which includes representatives of the controlling shareholder, PJSC Transneft, as well as the Russian Federation and the Company's management, decided to recommend to the Annual General Meeting of shareholders of PJSC "NCSP" to additionally pay dividends for the results of 2018 in the amount of 9,629,907,700 (Nine billion six hundred twenty-nine million nine hundred seven thousand seven hundred) rubles 00 kopecks.

The Board of Directors took the following decisions on May 21, 2019:

1. To recommend to the AGM to pay dividends as stated above.
2. To distribute the net profit received in 2018 in the amount of 15,063,349,449 (Fifteen billion sixty-three million three hundred forty-nine thousand four hundred forty-nine) rubles 40 kopecks, as follows:
   1. Direct a dividend payout of 14,829,906,617 (fourteen billion eight hundred twenty nine million nine hundred six thousand eight hundred seventeen) rubles 92 kopecks (including part of the profit of 5,199,999,117 (five billion one hundred ninety nine million nine hundred ninety nine thousand one hundred and seventeen) rubles 92 kopecks paid as dividends for the first half of the year and nine months of 2018).
3. To determine the size of the dividend per share 0.5 rubles.
4. To set June 25, 2019 as the date on which the persons entitled to receive dividends are determined.
5. To pay dividends to nominal holders registered in the share register and to professional participant in the securities market to a trustee in the period from July 1, 2019 to July 9, 2019 inclusive and to other persons registered in the share register in the period from July 1, 2019 to July 30, 2019 inclusive.
6. To approve forms and texts of voting bulletins and drafts of electronic messages for nominee shareholders for AGM.

If shareholders of PJSC NCSP follow the Board of Directors' recommendations when making their decision, the total dividends for 2018 (taking into account the interim dividends in the amount of RUB 5,199,999,117.92 paid earlier for 6 and 9 months) will totaled RUB 14,829,906,817.92.

In 2018, the PJSC NCSP net revenue as per RAS amounted to RUB 15,063,349,449.40. With regard to the results of the previous year, it is proposed to allocate to dividends 98.4% of the Company's net revenue as per RAS, which will be the record value of this indicator for PJSC NCSP. In 2017 and 2016, 32.5% and 61.4% of net profit as per RAS were allocated to dividends, respectively. At the end of 2015 no dividends were paid.

According to analysts, PJSC NCSP's shares may enter the top ten leaders in terms of dividend yield in Russia in the summer of 2019.

The Annual General Meeting of Shareholders of PJSC NCSP will be held in Novorossiysk on June 14, 2019. For the notice of basic fact "On Respective Resolutions Adopted by the Issuer's Board of Directors (Supervisory Board)", see the PJSC NCSP website at http://www.nmtp.info/holding/investors/info_disclosure/basic_fact/.

NCSP Group is the largest port operator in Russia by cargo turnover. PJSC Transneft is the controlling shareholder (62%) of PJSC NSCP.

NCSP Group is traded on Moscow Exchange (NMTP) and London Stock Exchange as GDRs (NCSP). NCSP Group volumes in 2018 totaled 140.2 million tons. NCSP Group consists of: PJSC NSCP, LLC Primorsk Trade Port, JSC Novorossiysk Ship Repair Yard, JSC NCSP Fleet, JSC NLE, LLC IPP, Baltic Stevedore Company LLC and LLC SFP.

For more information, please contact:

For press:  MSidorov@ncsp.com

For investors:  IR@ncsp.com