PV GAS announced that it will soon spend 13,780 billion VND to pay dividends in 2023 at a rate of 60% of charter capital, meaning each share will receive 6,000 VND.
PetroVietnam Gas Corporation (PV GAS, stock code: GAS) recently announced a resolution of the Board of Directors on approving the cash dividend payment plan for 2023. Accordingly, PV GAS will pay 2023 dividend at a rate of 60% (equivalent to shareholders owning 1 share receiving 6,000 VND) in the period from October 14 to November 29.
With nearly 2.3 billion shares in circulation, it is estimated that PV GAS will need to spend more than VND13,780 billion to pay dividends to shareholders. The majority of this amount will go to the Vietnam Oil and Gas Group (PetroVietnam), the parent company holding 95.76% of GAS's capital.
This is the highest dividend rate ever of PV GAS, and is three times higher than the rate approved by the company at last year's annual general meeting of shareholders.
In an analysis report in June, experts from KB Securities Vietnam (KBSV) said that this dividend level far exceeded their expectations. This dividend level is equivalent to a dividend yield of 7.4% at the time KBSV made the assessment, thanks to which this analysis group changed its stock trading recommendation to buy.
In addition to the plan to pay huge dividends, GAS also approved the implementation of a plan to issue shares to increase equity capital from owners' equity in 2024. Specifically, GAS plans to issue more than 45.9 million shares, equivalent to 2% of outstanding shares. The exercise ratio is 50:1.
The capital for issuance is drawn from the Development Investment Fund at the time. The Company plans to issue in the third or fourth quarter after receiving notice from the State Securities Commission.
The dividend payment information has positively impacted stock prices on the stock exchange. GAS reversed the market trend, increasing 0.4% to VND78,300, thereby breaking the 3-session losing streak. Today (July 15), GAS recorded more than 1.2 million shares successfully transferred, equivalent to a transaction value of about VND95 billion.
The current price range is still lower than the projections of some securities companies. SSI Research a month ago expected the stock price to reach VND84,000 based on the 2024 EPS forecast and a 1-year target P/E of 18x. “In the short term, a cash dividend of VND6,000/share, equivalent to a dividend yield of 7.4%, will support the stock price. On the other hand, the LNG segment and the progress of the Block B project will be long-term supporting factors for the stock price,” said the SSI analysis team.
PV GAS targets total consolidated revenue this year at VND70,176 billion, down 22% (equivalent to VND19,778 billion) year-on-year. Profit before and after tax will reach VND7,249 billion and VND5,798 billion, respectively, both down half year-on-year. The company expects cash dividends this year at 20% of charter capital.
The management board said that domestic gas resources are entering a period of rapid decline. Cheap gas resources have decreased sharply, and instead, high-priced gas resources account for a large proportion. PV GAS plans to add about 1.4 billion m3/year of gas resources in the 1 million ton LNG warehouse project at Thi Vai, but the mechanism for selling LNG for electricity production has not yet been approved. In addition, the domestic LPG business market has fierce competition in supply, pushing the product down to low market prices, affecting business efficiency.
In the first quarter, the company recorded revenue of VND23,315 billion, up nearly 10% over the same period last year. Pre-tax profit reached VND3,170 billion and after-tax profit reached VND2,543 billion, both down 25% over the same period last year. Total assets as of the end of the first quarter reached VND91,776 billion, up 4.5% compared to VND87,754 billion at the beginning of the year. Liabilities were over VND23,875 billion, most of which were short-term debts.
Source: https://baodautu.vn/gas-danh-13780-ty-dong-chia-co-tuc-tien-mat-d220047.html
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