The Jakarta Post
Publicly listed petrochemical firm PT Chandra Asri Petrochemical (TPIA) announced on Tuesday a plan to distribute 4 US cents per share in dividends totaling US$150 million, or 50 percent of the firm’s 2016 net profits.
“Part of the dividend payout, or 1 cent per share, was distributed last September, so the remaining 3 cents will be paid on May 23,” the firm’s investor relations head Harry Muhammad Tamin said after a shareholders’ meeting on Tuesday.
The shareholders also approved the company’s plan to conduct a rights issue in August, selling 280 million pieces of its shares out of the total 3.286 billion pieces that it owns. This is in compliance with a Jakarta Stock Exchange (IDX) regulation, which obliges firms to have at least 7.5 percent of its total stock owned by the public.
(Read also: Chandra Asri in full gear for $5 billion expansion)
Currently, only 4.22 percent of the firm’s stock is owned by the public. The proceeds from the rights issue will be used to capitalize the firm’s mid-term capacity expansion.
Amid low raw material prices and high end-product prices, the firm enjoyed a surge in net profits to $300 million in 2016 from $26.3 million in 2015.
Revenues, meanwhile, were up 40 percent to $1.93 billion.
The firm, which owns the sole naphta cracker facility in Indonesia, uses naphta, a derivative of crude oil, as raw material to produce ethylene, polyethylene, polypropylene, butadiene and styrene monomer, all of which are raw materials used in plastics.
Shares in Chandra Asri (TPIA) are presently sold for Rp 26,650, having gained 10.9 percent over the month. (bbn)