Coal producer China Shenhua surges on huge special dividend payout
The company’s shares jumped as much as 20.2 per cent after its board declared a dividend payout of more than double its net profit for last year
The firm announced late on Friday that it would pay a final dividend of 46 fen per share – up 43.8 per cent from 2015 – besides a special dividend of 2.51 yuan.
The total payout for 2016 amounts to 59.1 billion yuan (US$8.6 billion), 237 per cent of the company’s net profit for the year, and 32.4 per cent of its 153.8 billion yuan in retained earnings accumulated since it was listed in 2006.
“The board considers that the debt to assets ratio of the company is comparably low in the industry,” Shenhua Energy said in a filing to the Hong Kong stock exchange. “[In] recent years, the capital expenditure of the company has decreased...and in the near future, the operation cash inflow of the company will be positive.
The board considers that the debt to assets ratio of the company is comparably low in the industry
“Without prejudice to the healthy and sustained development of the company, the board proposes the above [dividend payout] proposal to offer a better return for investors.”
