The Management and Supervisory Board proposed to distribute the net profit from 2019, in the total amount of HRK 23.34m to the retained earnings and mandatory reserves.

Tankerska Next Generation pubished a convocation to the GSM in which the Management and Supervisory Board proposed to distribute the net profit from 2019, in the total amount of HRK 23.34m to the retained earnings and mandatory reserves. This implies no dividend payment in this year. As a reminder, the company did not payout a dividend in 2019 as well.

The proposal is subject to approval at the GSM which will be held on 21 August 2020.

Dividend per Share (HRK) & Dividend Yield (%) (2016 – 2018)

The decision not to pay the dividend in 2020 for 2019 is based on the business results achieved last year and the market forecasts for the product tanker segment in 2020 and the estimated costs related to refinancing and monitoring of the regulatory environment, but primarily due to the impact of COVID-19 on the world economy and the unpredictable duration and scale of recovery.

The company added a slowdown in the global economy due to the impact and consequences of COVID-19, seems like an inevitable outcome. The Company’s operations, which are extremely international, where they continuously generate 99% of their operating revenues, confront them with many challenges in a completely new, unpredictable economic environment. TNG states that they continuously strive to minimize business risk by negotiating a combination of spot market employment with time charters, but the volatility of the freight market requires increased responsibility for managing liquidity risk.  

In the next two years, the Company also expects regulatory requirements that include the cost of ballast water treatment instalments, which they can classify at approximately USD 550,000 per vessel (which does not include transportation and installation costs). In addition to significant amounts of long-term loan commitments that affect cash flow risk, TNG also has liabilities to banks that require minimum liquidity in transaction accounts per vessel.

Yesterday’s trading session was marked by a decrease in share price of 22 companies, while the main index observed a decrease of 1.14%, closing at 1,636.88 points.

Yesterday’s trading session was marked by a decrease in share price of 22 companies, while in total 36 companies shares were traded yesterday. The main index observed a decrease of 1.14%, closing at 1,636.88 points.

Of the traded blue chips, Valamar observed the highest share price decrease of 4.03%, closing at HRK 26.2 per share, while the company was traded HRK 25.5 per share at the lowest point during the trading session. At the current share price the company is traded at a P/E of 14.4 and EV/EBITDA of 8.4.

Arena Hospitality Group comes next with a decrease of 2.26%, closing at HRK 260 per share. Atlantska Plovidba was another share whose price decreased 4.24% at the turnover of HRK 0.7m. Meanwhile Adris pref. closed the trading day at HRK 381 per share, marking a daily decrease of 1.55%.

Such share price performance of theses traded companies could arguably be attributed to increased retail trading, which could have been impacted by an ongoing concern regarding new Covid-19 cases both globally and in the region.

Of the most traded shares Institut IGH, Atlantic Grupa and HT were the shares whose price increased yesterday by 13.97%, 0,29% and 0.79%, respectively. This is in line with fact these companies are operating in sectors that are known as defensive during the time of corona virus epidemics.

At the share price a day before the announcement date, the dividend yield is 2.1%. Note that the ex-date is 24 June 2020.

Atlantic Grupa held their General Meeting in which the shareholders approved HRK 83.14m to be paid out as dividend. This would translate into a dividend of HRK 25 per share, which would be paid out from the part of retained earnings of the company from the year 2018 as well as from the part of the profit from 2019.

Such a dividend per share is 22% lower compared to the one paid in 2019.

At the share price a day before the announcement date, the dividend yield is 2.1%. Note that the ex-date is 24 June 2020, while the payment date is proposed for 15 July 2020.

In the graphs below, we are bringing you the company’s historical dividend per share and dividend yield.

Dividend per Share (HRK) and Dividend Yield (%) (2013 – 2020)