Aviation firm (SCS) proposes 60% cash dividend amid $16 billion project plan

Aviation firm (SCS) proposes 60% cash dividend amid $16 billion project plan

The decision comes on the heels of a remarkable fiscal year in 2024, in which the company achieved a historic revenue milestone by exceeding VNĐ1 trillion (US$38.4 million), marking a 47 per cent increase from the previous year.

The SCSC cargo terminal at Tan Son Nhat International Airport. — Photo scsc.vn

SCSC Cargo Service Corporation has announced plans to distribute a generous 60 per cent cash dividend to its shareholders.

The decision comes on the heels of a remarkable fiscal year in 2024, in which the company achieved a historic revenue milestone exceeding VNĐ1 trillion (US$38.4 million), marking a 47 per cent increase from the previous year.

The carrier-turned-cargo specialist has set its ambitious revenue target for 2025 at nearly VNĐ1.2 trillion, projecting a growth rate of over 7 per cent. 

It aims for a profit after tax of VNĐ860 billion, reflecting a 10 per cent increase from last year's record figures. These projections are underpinned by expected increases in both domestic and international cargo volumes, with forecasts suggesting an 8 per cent rise in domestic shipments and a 5 per cent growth in international cargo.

SCSC's financial health is noteworthy, with cash and cash equivalents comprising two-thirds of its total assets, while the company is free of financial debt. 

By the end of 2024, the company reported holding over VNĐ1.27 trillion in cash and bank deposits, reinforcing its strong liquidity position. This solid foundation enables the firm to pursue its strategic initiatives with confidence.

The proposed dividend, amounting to VNĐ6,000 per share and totalling VNĐ569 billion, reflects the company's commitment to rewarding its investors. 

SCSC had previously advanced 30 per cent of this amount in January, indicating a proactive approach to shareholder engagement.

Looking ahead, SCS is preparing to collaborate with the Airports Corporation of Vietnam for the operation of a new cargo terminal at the upcoming Long Thành International Airport. 

This $16 billion megaproject is pivotal for the company, as it anticipates a shift in international cargo traffic from Tân Sơn Nhất Airport to Long Thanh, which is expected to ease congestion at the current facility. 

Bizhub