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PPWSA investors receive increase in annual dividend after record company profit

Phnom Penh Water Supply Authority (PPWSA) investors have approved a KHR 32 rise (13.91% increase) on its annual dividend-paying out a total of KHR 262 per share.

The majority state-owned and first publicly listed company on Cambodia’s exchange is a municipal water utility that serves Cambodia’s capital Phnom Penh and surrounding areas.

The unanimous approval was made at the company’s 9th General Meeting of Shareholders (GMS) held virtually this week. The vote was attended by 114 (out of 118) shareholders who resolved to distribute a total of $5.58 million which will be distributed to shareholders listed on the register set for April 21.

The total dividend payout represents 25.79% of the company’s 2020 net profit and will be transferred to shareholders’ trading accounts in the first week of June. The annual dividend is equivalent to 3.3% of the stock price, before the announcement, trading at KHR 8,000 a share or 4.2% of its 2012 IPO at KHR 6,300.

In addition, shareholders approved the seven board of director’s yearly fees of $246,777 led by company Chairman Oum Sotha. “The GMS highly appreciated the great efforts of the PPWSA staff at all levels and all relevant sectors,” the company’s press releases stated.

In its 2021 business plan, the company has forecasted $85.12 million in revenue and $25.41 million in profit with 27,006 new connections planned for the year.

PPWSA stock price had risen from around KHR 6,000 to over KHR 8,000 a share last week has investors priced a dividend increase after the company announced it had generated a net profit for the 2020 financial year amounting to $21.62 million a 165.39% year-on-year increase.

The increase was due to success in reducing the rate of water loss to 9.74% as well as increasing the general price of water to its increasing customer base.

PPWSA share price fell to KHR 7,200 a share, a 9.7% decrease, in daily trade as the stock went ex-dividend and investors took their profits. The Ministry of Economy and Finance owns a total of 85% of all listed shares.

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