Petrolina profit surge, dividend upped

Petrolina (Holdings) Pcl posted a highly satisfactory set of preliminary 2005 results with profits surging by 53% higher while the dividend per share was lifted from 1.4 cent to 3.7 cent per share for a dividend yield of 8.7%.

Net profit surged 53.4% y/y to CYP 5.239.000 from CYP 3.418.000 in 2004 with EPS up at 5.99c, improving the historic p/e to 7x earnings based on the latest 42.5c price on the CSE.

The improvement in the results were attributed to the fact that 2005 was the first year where the full impact from the liberalisation of petroleum product retail prices was reflected in the financial results (abolition of PNBS became effective on May 2004), and the receipt of the non-recurring final PNBS settlement amounting to CYP 1 mln. Revenues increased by 11.2% to CYP 133.6 mln compared to CYP 120.1 mln in 2004. Gross profit was CYP 16.6 mln with gross profit margin decreasing marginally by 10 bps to 12.4%.

Following the bumper profits, the Board decided to propose a final dividend of 1.2 cent, double the 0.6 cent per share final dividend paid a year ago. Together with the interim dividend of 2.5 cent (2004: 0.8c), the total dividend amounts to 3.7 cent from 1.4 cent in 2004, lifting the yield to 8.7%.