The Company and the Stock Market

At present our common shares are traded on MICEX (Quotation List B) and in RTS (Stock admitted for trading without listing).

Exchange Russian Trading System
(RTS), ОАО
Moscow Interbank Currency Exchange
(MICEX), ZAO
*RTS and MICEX data.
Ticker MRKU (classic market)
MRKUG (exchanging market)
MRKU
Trading volume* RUR 27,960 894.91 RUR 1,105 827 792.91
Capitalization as of 31.12.2010 RUR 29,376 643 198.9 RUR 29,402 872 344.6
Share price as of 31.12.2010 RUR 0.336 RUR 0.3362

In 2010 the trends on the Russian stock market were determined by both domestic factors and investor expectations regarding post-crisis recovery of the global economy. 1Q 2010 was positive for the market: the rally of 2009 rolled on into the spring of 2010. During the second quarter a range of European countries (Greece, Portugal, Ireland and Spain) transpired to be in financial hardship. The moods of international investors changed for the worse, they began to sell risky assets which also included Russian stocks. In 3Q 2010 the capital markets rallied because the US Federal Reserve System announced new monetary injections weakening US dollar. Investors began to sell dollars and buy shares and primary commodities. Another firm driver for growth was strong quarterly financial statements disclosed by American enterprises. Fairly high oil prices were additional positive factor for oil-dependent Russian stock market.

Foreign and Russian stock indices (FTSE, NASDAQ, NIKKEI, MICEX and RTS) in dynamics during January-December, 2010 (exchange data).

During the reported period IDGCU’s quotes moved in opposite directions and generally echoed key trends of the Russian stock indices. During 1Q 2010 our shares grew in tandem with the market. However, in 2Q 2010 the quotes began to subside due to overall meltdown and the news negative for energy sector - government plans to suppress tariffs, information on failures in transition to RAB tariffs, etc. During 3Q and 4Q 2010 the energy sector quotes improved. Continuation of transition to RAB tariffs as well as market expectations regarding FST resolutions on RAB parameters also played a pivotal role.

Our shares and MICEX/ MICEX-Power in dynamics during 2010.

Our shares and RTS/ RTSeu in dynamics during 2010.

According to the data provided by the exchanges, as of December 31, 2010, the trading volume in Russian Trading System, since the start of the year, totaled RUR 28.0 mln. In quantitative terms the trading volume totaled 90.7 mln. shares. On Moscow Interbank Currency Exchange the volume totaled RUR 1 105.8 mln., in quantitative terms - 3 701.0 mln. shares. Our MICEX capitalization, as of 31.12.2010, totaled RUR 29.4 bln.

Dividend policy

The dividend policy of IDGC of Urals, OAO is based on the balance of interest between the Company and shareholders at the determination of the dividend amount as well as respect and strict adherence to the observation of shareholder rights stipulated by the Russian legislation, the Charter and our internal documents. It is aimed at increasing our investment attractiveness and market capitalization. According to the approved policy principles dividends are distributed from the net profit (without revaluation of financial investments) following its distribution to obligatory reserves, investment program as well as clearing off of the operating losses shown in previous years. Besides, there are the following new approved conditions which are obligatory for fulfillment while deciding on the dividend payout:

  • Presence of the net profit without revaluation of financial investments;
  • Debt/EBITDA ratio as of the year end should not exceed 3;
  • Achievement of the set reliability and service quality indicators.

To view the Regulations on the Company’s dividend policy (BoD Protocol #73 dd. 03.09.2010), please, visit our corporate web-site at: http://www.mrsk-ural.ru/en/374 (Section Internal Documents). On June 25, 2010 the AGSM decided not to pay 2009 dividends. According to the resolution net profit, equaling RUR 1 053 267 thous., was distributed as follows: profit for further enterprise development – RUR 1 000 714 thous., reserve fund – RUR 52 553 thous. As of 2010 dividends will presumably total RUR 245 550 thous. The amount of dividend per share is RUR 0.0028.