MAYBULK 5077 MALAYSIAN BULK CARRIERS BERHAD announces additional 3.5 sen special dividend
KUALA LUMPUR (Dec 8): Malaysian Bulk Carriers Bhd is planning to pay shareholders an additional interim special dividend of 3.5 sen for its financial year ending Dec 31, 2022, on top of the 6.5 sen special dividend it announced last month along with its third quarter results.
Both the special dividends, totalling 10 sen, will be paid on Jan 5, 2023, while Dec 21 has been fixed as the ex-dividend date, its bourse filings showed.
In announcing its results for the third quarter ended Sept 30, 2022, Maybulk said the special dividend of 6.5 sen per share amounted to a payout of RM65 million. Based on this and the additional 3.5 sen payout, the total special dividend should amount to RM100 million.
The group made a net profit of RM12.27 million in 3QFY2022, compared with RM113.57 million in the 3QFY2021, as revenue dropped to RM38.2 million from RM58.67 million. It should be noted that the group's 3QFY2021 earnings were lifted by a RM91.45 million gain on disposal of property, plant and equipment.
For the first nine months of FY2022 (9MFY2022), Maybulk's net profit halved to RM81.78 million from RM160.63 million in 9MFY2021, as revenue fell to RM116.85 million from RM158.91 million, as hire days were lower from a smaller fleet size, despite a 10% rise in charter rates.
The lower cumulative earnings were also because 9MFY2022 had recorded a smaller gain on disposal of property, plant and equipment of RM50.06 million compared with 9MFY2021's RM98.01 million, when it also recognised RM6.9 million from the derecognition of a joint venture.
On prospects, the group stated that the drybulk market had softened since the beginning of the third quarter, though there has been some recovery as Ukrainian exports picked up momentum and sentiment turned better, with the anticipation of a stronger US Gulf market.
“However, the improvements in rates halted toward the end of 3Q, with an ill-timed drought in the US Gulf during the current grain season with easing congestion in China which (was) almost back to pre-Covid levels,” it said.
“We expect to see drybulk freight levels for 2023 to be at levels lower than 2022. The group does not foresee a reversal of this trend in the immediate term and the group will continue to deploy short to medium term charters to mitigate against volatile market conditions,” it added.
Maybulk's share price closed half a sen sen or 1.15% lower at 43 sen, giving the group a market capitalisation at RM430 million.