KAPCO announces 30pc dividend

Posted on 02.17.07 by StockPK Team @ 2:42 pm    

Kot Addu Power Company (KAPCO) managed to announce an interim cash dividend of Rs3 per share (i.e. 30 per cent) for the first half of fiscal year 2007 ending on December 31, 2006, on Friday, despite of a decline the Company registered in its net income.

Net income of the company posted a decline of 42 per cent to Rs2.3 billion (EPS Rs2.6) from that of Rs4.0 billion (EPS Rs4.6) for the period mentioned above.

Decline in earnings mainly ensued from application of corporate taxation and falling debt profile leading to lower principal repayment, Faraz Farooq of JS Research said.

Alone in second half of the current fiscal year, KAPCO posted net profit of Rs1.2 billion (EPS Rs1.4) as compared to profit of Rs1.9 billion (EPS Rs2.2) - a decline of 38 per cent. Following the end of 10-year tax holiday on Jun 27, 2006, Kapco’s earnings have become liable to corporate taxation, Farooq added.

Source: The News