In early spring, businesses bustling to pay dividends

Many businesses spent hundreds of billion to pay dividends despite declines in results. Photo: ST

Benefits in early spring

Many firms that closed dividend rights before Tet paid to shareholders in the first days back to work after the Tan Suu Lunar New Year holiday. On February 19, Petrovietnam Fertiliser and Chemical Corporation (DPM) paid in advance the first cash dividend of 2020 at a rate of 7%, corresponding to each share to receive 700 dong. It is estimated the total amount DPM has to spend in this phase is about VND 274 billion. In 2020, DPM's business results were very positive while profit after tax reaches VND 703 billion, up 81% compared to 2019 and exceeding 62% of the annual profit plan.

Meanwhile, the Covid-19 pandemic caused many difficulties for the production and business activities of the PAN Group in 2020, along with the great impact from record salinity in the Mekong Delta and floods in the central region. PAN's profit after tax for the whole year decreased by 27% compared to 2019, reaching VND 330 billion. However, on February 19, PAN made an advance of the 2020 dividend in cash at the rate of 5%. With 216 million listed shares, the estimated amount PAN spent on this dividend in advance is about VND 108 billion.

On February 22, Da Mi - Ham Thuan - Da Nhim Hydropower Joint Stock Company (DNH) made the first payment of the 2020 dividend in cash at the rate of 14%, equivalent to one share will receive VND 1,400. With 422.4 million outstanding shares, DNH's estimated amount for this advance dividend is more than VND 591 billion. Due to poor hydrological conditions, the net profit of DNH decreased by 36% in 2020, reaching about VND 670 billion. However, the company paid dividends at a rate approved by the AGM.

At Binh Minh Plastic Joint Stock Company (BMP), business results in 2020 were very positive with VND 522 billion of profit after tax, up 24% from 2019 thanks to increasing consumption and selling prices. Accordingly, BMP will make advance dividends for the second term of 2020 on February 25 in cash with a rate of up to 20%, equivalent to VND2,000 per share. Thus, it is estimated that BMP will spend VND 164 billion to pay its dividends in advance.

Power-closing bustle

Along with the dividend payment of firms that have closed the rights before Tet, many other companies also announced they woulf close the list of shareholders to pay dividends. Da Nang City Education and Book Joint Stock Company (DAE) announced March 4 as the final registration date to close its list of shareholders to pay in advance 14% cash dividend of 2020, the date of payment will be March 26. With nearly 1.5 million shares outstanding, DAE will spend some VND 2.1 billion to pay dividends.

Thac Mo Hydropower Company (TMP) recently announced the decision of the Board of Directors to approve the advance dividend payment rate of 15% of charter capital in 2020. The last registration date is March 10 and payment date is March 18. With 70 million shares outstanding, TMP plans to spend 105 VND billion to pay in advance for 2020 dividend. In 2020, TMP's net revenue fell 34%, reaching VND 443 billion; EAT also dropped by 52%, reaching VND 182 billion. The cause of the decline is unfavourable weather, lower water flow to Thac Mo lake, leading to a decrease in power output compared to 2019. The electricity output paid at contract prices increased by 10% compared to with 2019 (80% in 2019 and 90% in 2020) leading to a decrease in output paid at market prices, causing a decrease in electricity sales for the year.

For the Saigon Beer - Alcohol - Beverage Corporation (SAB), business activities in 2020 were strongly affected by the Covid-19 pandemic and Decree 100 as well as the complex developments of natural disasters and floods in the central region. Therefore, the revenue for the whole year 2020 fell by 26%, reaching nearly VND 28,000 billion. Profit before tax also decreased by 8%, to nearly VND 5,000 billion. However, this company advances the 2020 cash dividend at the rate of 15%. With more than 641 million shares outstanding, it is estimated Sabeco will have to spend more than VND 962 billion on this advance. The firm will pay the dividend on March 26 and the ex-dividend date will start from March 2.

Dam Sen Water Park Joint Stock Company (DSN) was also heavily influenced by the Covid-19 pandemic, so net revenue in 2020 fell by nearly 62% compared to 2019, to more than VND 84 billion.Net profit also decreased by nearly 57%, reaching only VND41 billion. By the end of 2020, total assets of DSN are more than VND 224 billion, down nearly 19% from the beginning of the year. In which, cash and cash equivalents decreased by more than 60% to nearly VND38 billion.

Recently, DSN announced to pay dividends 2020 in cash to shareholders at a rate of 25%. This is the lowest dividend rate in recent years of DSN. The ex-dividend date is February 26 and execution date is March 15. With more than 12 million shares outstanding, DSN needs to spend more than VND 30 billion.