Semirara declares highest-ever special cash dividend

The Gotainun Family has been milking this cash cow for a while now, but investors have had the opportunity to profit right alongside the family, as the stock price has basically been on fire since August of 2020 when it closed at a 5-year low of P9.04/share.
Merkado Barkada

(Corrected: 9:36 a.m.) The board of directors for Semirara Mining & Power [SCC 41.50 2.47%] [link] voted to declare a P3.50/share special cash dividend, payable on November 15, with an ex-date of October 26.

SCC said that this special dividend was 100% higher than the special dividend that it announced last year.

SCC also noted that the combined special and regular dividends will total P5.00 per share in 2022, which is “the highest in its corporate history”.

MB BOTTOM-LINE

Right place, right time. Well, not really for Ukrainians, or the rest of the world, but for owners of a company that mines coal and sells electricity, times couldn’t be better.

The Consunji Family has been milking this cash cow for a while now, but investors have had the opportunity to profit right alongside the family, as the stock price has basically been on fire since August of 2020 when it closed at a 5-year low of P9.04/share.

It’s gone up 360% in the two years that have followed, all while declaring some of the fattest dividends in recent PSE memory.

In May, the family tried to throw some cold water on SCC’s record-breaking performance by casting some doubt on the stability of the coal price going forward. Those remarks were made after coal’s price fell 25%.

Since then, however, the price of coal has fully recovered and has plateaued at a choppy (but obscenely profitable) level.

 

Editor's Note: A previous version of this commentary incorrectly named the Gotianun Family as the owner of SCC. This has been corrected.

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