Russian metals producer Mechel PAO's board of directors recommended a dividend payout on preferred shares for 2016 of 1.43 billion rubles, amounting to 10.28 rubles per share.

The board decided that there would be no annual payout on ordinary shares, the company announced in a press release on June 8.

In addition, 7.87 billion rubles will be used to cover losses in 2016, and a remainder of 18.23 billion rubles in accumulated profit from previous years will be left allocated.

Mechel registered a 45% jump in EBITDA for 2016 to 66.16 billion rubles and an increase in revenue of 9% to 276.01 billion rubles.

As of June 7, US$1 was equivalent to 56.93 Russian rubles.