Phu My Fertiliser to pay $45m in dividends

Phu My Fertiliser to pay $45m in dividends

Phu My Fertiliser Corp (DPM) next month will spend VND950 billion (US$45 million) to pay out dividends despite poor business result in the first quarter of this year.

DPM, one of the top 30 shares by market value and liquidity on the HCM City Stock Exchange, will pay a cash dividend at the rate of 25 per cent. The deadline for shareholders to register to participate in the payout is May 20, with the payment to be made on June 13.

The company has already paid a cash dividend at the rate of 25 per cent, lifting the total cash dividend of 2013 to 50 per cent, equivalent to VND1.9 trillion ($90 million).

The fertiliser company has also just announced consolidated business results from the first three months of this year, with its net profit reaching just VND381 billion ($18 million), down nearly 46 per cent compared to the same period last year.

Its revenue also took a hit of 13.22 per cent during the period, reaching more than VND2.5 trillion ($118.5 million).

The firm attributed the fall to lower sale prices compared to the first quarter of last year, while volatility on the financial market slashed finance-related revenues by 40 per cent during the period.

The company has set modest business targets for this year and has expressed concerns with volatility in the fertiliser market. Its total revenue is projected at VND8.7 trillion ($412.3 million) while net profit is expected to reach VND1.219 trillion ($57.8 million), down 19.5 per cent in revenue and 45 per cent in profit from last year. The uncertainty has also led the company to trim its dividend rate to just 25 per cent this year.

vietnamnews