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Ch Karnchang board approves dividend formula

Ch Karnchang's board of directors has approved a dividend at the ratio of 40 existing shares per one stock dividend, the total not to exceed Bt41.31 million or the equivalent of Bt0.025 a share.

For any partial share following the allocation of a stock dividend, CK will pay cash to the stockholder at Bt0.025 and a cash dividend of Bt0.202778, for a total cash dividend pay-out of Bt335.1 million and total per share of Bt0.227778, or the equivalent of Bt376.42 million.

When combined with the interim dividend payment for January to June 2013 operations at Bt0.20 per cent per share, totalling Bt330.51 million, the divided payment for 2013 is equal to Bt0.402778 per share, plus stock dividend (at existing 40 shares for one stock dividend), or the equivalent of Bt0.427778 per share.

CK set May 7, 2014, as the date when shareholders will no longer be entitled to their dividend rights. The dividends will be paid on May 28, president Plew Trivisvavet said.

Meanwhile, the company reported strong operational results last year with Bt7.67 billion in net profit from operations, an increase of 1,214.04 per cent over 2012, a new record for the company. Revenue from construction business was Bt32.57 billion, up 57.46 per cent over 2012.

Plew said the strong results were due to a number of factors. There was a sharp rise in revenue and profit from construction business, with in-hand projects generating about 10-per-cent profit margin, thanks to efficient engineering and financial management, as well as selective project policy.

Healthy return

The company also saw solid income from its investments in subsidiaries and affiliated companies, such as Bangkok Expressway, Thai Tap Water Supply and CK Power.

The final main contributing factor was revenue and profit from disinvestment in successful firms such as Thai Tap Water Supply and Bangkok Metro, in which CK had invested from the very beginning.

As for this year, CK expects operational results to be in accordance with targets, with revenue from construction business exceeding Bt30 billion and with initial profit of 8-10 per cent. This does not include new projects awaiting the signing of contracts, such as the Bt5-billion Bang Pa-in electricity-generation plant (Phase 2), the Bt15-billion Nam Bak hydropower dam project in Laos, the more than Bt700-million BTS Green Line (Bearing-Samut Prakan) project and others CK is proceeding with.

As for investments in subsidiaries and affiliated companies, CK is confident all such infrastructure-related firms will continue to generate strong revenue and profit and expand considerably.

As for the delayed tendering of state projects caused by the prolonged political impasse, CK has made preparations to manage the potential risk, such as in-hand projects totalling Bt120 billion for the next four to five years. Hence the firm sees this as a good time to attend to its pending and in-hand projects and secure the necessary human resources and other required assets to support its business and future projects.


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