Kohinoor Energy pays dividend

Attention: open in a new window. PDFPrintE-mail



KARACHI : With the start of the results season, Kohinoor Energy Limited announced payment of interim dividend to shareholders at a staggering 42.50 per cent or Rs4.25 per share.

 

The directors stated that the dividend was in addition to the two interim dividends already paid at 20pc or Rs2 per share and 25pc or Rs2.50 for the financial year 2012-13.

 

The aggregate payout to shareholders amounts to 87.5pc or Rs8.75 on the share of the par value of Rs10.

 

The company announcement was warmly greeted by the stock market.

 

Analyst Asad I. Siddiqui at Topline Securities, in a note on Thursday stated that as payment of Rs270 billion by the government to clear dues of IPPs relating to circular debt had finally materialised, many market participants harboured hopes that IPPs may provide one time big dividend payout.

 

The expectations of abnormally high payout were more from those IPPs that were left with residual cash after paying off their liabilities.

 

Kohinoor Energy was in the habit of retaining cash in the previous eight years for expansion purposes, as a result of which its average payout ratio was 62pc per year.

 

“At the end of 1QFY13, the company's receivables stood at Rs5.9bn, which by 3QFY13 had declined to Rs5.6bn, suggesting that company received payment of Rs278mn (Rs1.6/share) from Wapda, which clarifies how the company was able to pay dividend per share at a huge Rs4.5 when its earning per share was Rs3.5 in 9MFY13,” analysts explained.

 

With successful completion of phase 1 of circular debt resolution, the company received Rs3.9bn or Rs23 per share from Wapda/Pepco.

 

At the end of 9MFY13, company's receivables stood at Rs5.6bn or Rs33 per share while payables (short term borrowings and trade payables) stood at Rs3bn or Rs17.5 per share.



Courtesy:  Dawn


Forex open Market rates & comments Archive

Login Form