PPWSA to announce its first dividend

Phnom Penh Water Supply Authority (PPWSA) yesterday announced plans to pay its first dividend to shareholders.

While investors do not expect high returns from the 2012 operations, many are optimistic that the dividend payment is indicative of a strong future outlook for their shares.

“With a strong performance of the company, we are going to initiate a dividend division program, and our shareholders will benefit from this considered opportunity,” said Meng Sak Theara, chairman and director of PPWSA.

“Even though we have enough capital to support our operation, it is still necessary to get cash locally [from stock investors] to do repayment on our previous loan.”

Dividends from the stock will be given to investors next month in cash after the financial performance of the company is audited by an international firm.

Up until now, the company released neither the price of dividend per share nor the amount of revenue shareholders will get, as PPWSA is waiting for the audit be completed.  

Om Seng Bora, who was at the first shareholders’ general meeting yesterday, was elected as an independent director of PPWSA.

He said the growth at PPWSA has not been a problem, and the company is on track to become fully transparent and to become the strongest operation in Cambodia.

“Regardless of what amount of dividend will be given per share, the division of this profit is a significant sign to build confidence for investors, and it is an essential step to get positive movement in this market,” Bora told the Post yesterday after the meeting.  

According to Chea Prasith, an investor who holds shares in PPWSA and was present at the general meeting yesterday, investors were growing increasingly optimistic and looking forward to the coming dividend.

“I am keeping my share without concerning the fluctuating price because I am curious to get the dividend from this investment,” Prasith said.

“Whatever the amount of return I get, I am happy with this new investment.”

The price of PPWSA yesterday was 6,650 riel per share, with the total number trading at 18,122 shares.