17-03-2012, 10:55 PM
(17-03-2012, 04:19 PM)weijian Wrote: Hi all,
Above is the historical dividend payout ratios to Net income and FCF, for SIAEC. The dividend payouts seem to 'step up' after GFC2008. Does anyone know what is the DIVIDEND POLICY for SIAEC? (I can't seem to find it at the website or the annual reports)
As far as I know it, SIAEC does not have a defined dividend policy or a fixed or indicative payout ratio. But let's observe what we can from the last few years' financials.
Share of Profits from Associates and JVs:-
FY 2008 - S$157.9 million
FY 2009 - S$173 million
FY 2010 - S$129.7 million
FY 2011 - S$144.4 million
9M FY 2012 - S$110.9 million
Dividends from associates and JV companies (under ICF in CFS):-
FY 2008 - S$89.0 million
FY 2009 - S$115.4 million
FY 2010 - S$153.4 million
FY 2011 - S$165.3 million
9M FY 2012 - S$90.3 million
The above illustrates that there has been a steady uptrend in both share of profits and dividends received (as cash flows) since FY 2008. Their stable of associates and JVs has been contributing more and more to share of profits and providing a lot of cash to the business (interestingly, if you look at 9M FY 2012 results the dividends received from assoc and JV were even MORE than the OCF!).
To observe the dividends, let's look from FY 2008 onwards.
FY 2008 - Interim 4c, Final 16c
FY 2009 - Interim 5c, Final 11c
FY 2010 - Interim 5c, Final 13c
FY 2011 - Interim 6c, Final 14c, Special 10c
FY 2012 - Interim 6c, Final ??
It should be noted that there has been an increase in the total dividend paid out (with exception of FY 2008), with interim increasing at a steady rate over the last 5 years. For FY 2011 (last year), note that the cash balance of SIAEC had accumulated to S$581.4 million (as at March 31, 2011); and that was the reason for the declaration of a special 10c dividend. There had only been two other instances of special dividends, in FY 2004 and FY 2006 (both 20c each).
Cash Balance of SIAEC stood at S$388.3 million as of Dec 31, 2011. 4Q is usually a period where a lot of cash comes in, as evidenced by 4Q FY 2011 where cash balances from assoc and JV jumped up and pushed the ending cash balance to a record high back then.
I am fairly confident that SIAEC will be able to maintain the 14c final dividend which it paid out last year. With the ongoing financial crisis in Europe, there is a possibility of them dropping the dividend to 10c or 12c to conserve cash. But with the recovery taking root and the aviation industry still growing, I feel dividends will be poised to improve and probably will surpass FY 2011 in a few years time, if not in FY 2013.
(Vested)
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