The Board and the Group management aim at all times at keeping the Company’s equity and other financing adapted to the Company’s objectives, strategy and risk profile. The Group’s operations are of such a nature that modest equity is required to conduct the operations, however, the Board continuously evaluates the equity position of the Group. The Group had total equity of NOK 318.4 million at 31 December 2011. The equity position of the Group and covenants related to the equity position has been presented under the notes to the consolidated financial statements.
RS Platou Markets AS had a total capital adequacy ratio of 20.47 %. RS Platou Markets AS, including its two subsidiaries, had a total capital adequacy ratio of 21.48 % The Norwegian authorities’ minimum capital adequacy requirement is 8 %.
RS Platou's objective is to yield a competitive return on invested capital to the shareholders through a combination of distribution of dividends and increase in equity values. When evaluating the amount of dividend payable, the Board places emphasis on certainty, foreseeability (especially provided through the Forward Book), the Company's cash position and distributable equity, the requirements to sound and optimal equity capital as well as adequate financial resources to enable future growth and investments, applicable legal or contractual restrictions and the desire to minimize the cost of capital. The Company will pay dividends directly to the VPS Registrar, which has undertaken, in turn, to distribute the dividends to the beneficial shareholders as registered in VPS.
To ensure flexibility in the Group’s capital structure and capital management, the Board aims to continually hold authorizations to repurchase own shares and increase the share capital. Under normal circumstances the Board should hold authorization to acquire own shares with a par value corresponding to 10 % of the share capital and hold authorization to increase the share capital by about 10 %. The Board is currently authorized to acquire own shares for a total face value of NOK 1 024 279. In addition the Board has been authorized to issue up to 20 000 000 new shares. The above mentioned authorizations are valid until the ordinary general meeting in April 2012. Authorizations to acquire own shares and issue new shares are assessed annually by the ordinary general meeting.