The Board of Directors of Petrolina Holdings hiked its interim dividend to 2.5 cent per share from 0.8 cent a year ago and 1.4 cent for the whole of 2004 on the back of a sharp increase in first half profitability.
The 2.5 cent interim dividend, representing a yield of 6.5% was open to all registered shareholders on August 18 and will be paid on September 5, according to the company.
Net profits quadrupled to CYP 2.09 mln in the first half from CYP 503.000 a year ago in the same period as the company took full advantage of the liberalisation of the market.
Revenues were reported at CYP 62.8 mln, up by 10.5%. Specifically, revenues from petroleum products surged by 9.9% to CYP 59.3 mln (representing 94.3% of total revenues vs 94.8% in 1H04), while revenues from gas products advanced by 22.2% to CYP 3.5 ml (representing 5.7% of turnover vs 5.2% in 1H04).
Gross profit increased by 38.6% at CYP 8.3 mln with gross profit margins improving from 10.56% in 1H04 to 13.24% primarily due to PHL’s improved pricing policy following the abolition of the PNBS as a result of Cyprus’ entry in the EU on 1 May 2004.
Total operating expenses in absolute terms increased by 6.4% in 1H05 to CYP 5.2 mln from CYP 4.8 mln in 1H04, whilst as a percentage of total revenues the Company operated more efficiently with total operating expenses improving by 30bps. Distribution costs were up 7.2% at CYP 4.2 mln while Administration costs were up 2.9% at CYP 944k.
EBITDA increased by 81% to CYP 4.4 mln, yielding a margin of 7.0% vs. 4.3% in the corresponding 1H04 year.
Operating profit reached CYP 3.14 mln compared to CYP 1.15 mln in the previous year.
Net finance expenses decreased by 23.9% to CYP 479.000, amid favourable FX related gains from CYP 630.000 a year ago.
The Company also recorded a loss from its associated companies amounting to CYP 171.000 compared to a profit of CYP 82.000 in the corresponding 2004 period. All in all, bottom line profitability surged by 317% to CYP 2.095.895 from CYP 503.144 a year ago in 2004. The Company’s earnings per share reached 2.4 cent against 0.58 cent in 1H04 and 3.91 cent in FY04.
It is important to note that an amount of CYP 1 mln is expected to directly contribute to the Company’s bottom line figure in 2H05, representing PHL’s share of income from the cumulative deficit that emerged from the PNBS pricing system.
