Treasury forces KGHM to pay a pretty penny to shareholders
The shareholders of metals giant KGHM - the world's sixth largest copper producer - approved a Treasury proposal to pay out zł.400 million in dividends, or zł.2 per share. Management of the company had wanted to pay out a total of just zł.100 million, saying that investment plans precluded the company from paying out more.
But the Treasury, KGHM's largest shareholder with 44.28 percent, managed to convince the group's other shareholders to accept its proposal for the larger payout. KGHM's share price rose 1.6 percent after news broke of the higher dividend.
Earlier this month the Treasury also traded blows with management over the nomination of CEO Wiktor Blądek to the company's management board. Despite calls from Treasury Minister Jacek Socha to strip Blądek of the CEO position, the board refused to acquiesce.
The payout will be KGHM's first in four years, but according to chief financial officer Andrzej Szczepek, there will be more to come in the near future.
"We also want to present a plan for paying a dividend over the next three years," he said.
He also said that after what is turning out to be a better-than-expected first half of the year, the company will revise its annual financial outlook.
"After our first-half results [are released] we want to submit a proposal to our supervisory board about our new forecasts," said Szczepek. The group's Q1 profit reached zł.523 million in the first quarter alone - over 55 percent of its original forecast of zł.948 million in profit for the full year - and Q2 looks to be shaping up nicely as well.
"The second quarter looks promising. The dollar exchange rate, and in particular the weakening of the złoty in recent weeks, works in our favor," said Szczepek. (Reuters)
But the Treasury, KGHM's largest shareholder with 44.28 percent, managed to convince the group's other shareholders to accept its proposal for the larger payout. KGHM's share price rose 1.6 percent after news broke of the higher dividend.
Earlier this month the Treasury also traded blows with management over the nomination of CEO Wiktor Blądek to the company's management board. Despite calls from Treasury Minister Jacek Socha to strip Blądek of the CEO position, the board refused to acquiesce.
The payout will be KGHM's first in four years, but according to chief financial officer Andrzej Szczepek, there will be more to come in the near future.
"We also want to present a plan for paying a dividend over the next three years," he said.
He also said that after what is turning out to be a better-than-expected first half of the year, the company will revise its annual financial outlook.
"After our first-half results [are released] we want to submit a proposal to our supervisory board about our new forecasts," said Szczepek. The group's Q1 profit reached zł.523 million in the first quarter alone - over 55 percent of its original forecast of zł.948 million in profit for the full year - and Q2 looks to be shaping up nicely as well.
"The second quarter looks promising. The dollar exchange rate, and in particular the weakening of the złoty in recent weeks, works in our favor," said Szczepek. (Reuters)
