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Companies plan big dividend payments by year-end

Update: December, 12/2015 - 10:47
Workers at the Hoa Sen-Phu My factory in the province of Ba Ria-Vung Tau. — VNA/VNS Photo The Anh
HA NOI  (VNS) — Many companies have declared over hundreds of billions of Vietnamese dong to pay dividends in the next two months.

Petrovietnam Fertilizer & Chemicals Corp (DPM) is the biggest spender. It planned to spend VND950 billion (US$42.4 million) to make the first 2015 dividend payment at the rate of 25 per cent in form of cash, the company announced yesterday.

The fertiliser producer posted a net profit of almost VND1.2 trillion ($53.3 million) in the first nine months of this year, a rise of 25.5 per cent year-on-year.

Big payers also include two largest companies by market capitalization on the HCM Stock Exchange, steelmaker Hoa Sen Group (HSG) and seafood exporter Hung Vuong Corp (HVG).

Hung Vuong Corp will issue 37.84 million shares worth VND378.4 billion ($16.9 million) to pay dividend of this year at the rate of 20 per cent. Its nine-month earnings were not positive, however, when the net profit reached just VND64.4 billion ($2.9 million), down 81.3 per cent from the same period of last year.

Meanwhile, Hoa Sen Group plans an additional issue of 30.2 million shares worth VND302 billion ($13.5 million) to pay the second tranche of the 2013-2014 dividend, equivalent to a 30-per-cent rate. The first tranche of the dividend pay-out was made in July at a rate of 10 per cent.

Steelmaker Hoa Sen Group (HSG), one of the top 30 companies by market capitalisation on the HCM Stock Exchange, is the biggest spender.

The group plans to issue 30.2 million shares worth VND302 billion (US$13.5 million) to pay the second tranche of the 2013-14 dividend, equivalent to a 30-per-cent rate. The first tranche of the dividend pay-out was made in July at a rate of 10 per cent.

After this issuance, its charter capital will increase from over VND1 trillion ($44.6 million) to VND1.31 trillion ($58.5 million).

Hoa Sen Group's fiscal year begins on October 1 and ends on September 30 in the following year. For the 2013-14 fiscal year, it reported a net profit of VND410.3 billion ($18.3 million) and the cumulative amount of undistributed profits reached VND979 billion ($43.7 million).

Rubber companies are also generous payers.

Da Nang Rubber Co (DRC) is planning a 15-per-cent cash dividend scheme worth VND137 billion (US$6.1 million) by the end of this year and Phuoc Hoa Rubber Co (PHR) will spend about VND110 billion ($4.9 million) to pay shareholders a dividend rate of 15 per cent, expected on December 16.

However, their business results are mixed. Da Nang Rubber earned VND370 billion ($16.5 million) in after-tax profit in the first nine months of this year, up 16 per cent year-on-year, while earnings of Phuoc Hoa Rubber declined 53 per cent to just VND70 billion ($3.1 million) ending September.

Tien Phong Plastic Co (NTP), one of the top 10 biggest firms on the Ha Noi Stock Exchange, will also set aside VND93 billion ($4.1 million) to pay the first stage of the 2015 dividend at the rate of 15 per cent.

The pay-out will probably be made in January 2016.

The plastic company posted positive earnings in the third quarter with a net profit of VND85.8 billion ($3.8 million), up 22 per cent year-on-year. Ending September, it collected VND250 billion ($11.2 million) in net profit while the cumulative undistributed profits by September 30 reached VND332 billion ($14.8 million).

Other companies have declared a smaller dividend payment, ranging between VND60 billion ($2.7 million) and VND87 billion ($3.9 million), such as Binh Chanh Construction Investment Co (BCI), Bien Hoa Sugar Co (BHS), Tu Liem Urban Development Co (NTL) and An Giang Fisheries Import Export Co (AGF). — VNS

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