National oil and gas conglomerate PTT Plc has approved a dividend payout ratio of 76% of 1.32 baht earnings per share for the full year 2020, up from its average of 46% of earnings per share since the firm was listed on the Stock Exchange of Thailand in 2001.
Its highest ratio stood at 148.6% in 2015.
PTT shareholders yesterday agreed with the 76% ratio, with the dividend to be paid at around one baht per share.
In the first half of 2020, the dividend was paid at 0.18 baht per share, while it was 0.82 baht per share in the second half.
The dividend of 0.82 baht per share is scheduled to be paid on April 30. The company has yet to set a payment date for the 1.32 baht earnings per share.
PTT president and chief executive Auttapol Rerkpiboon said the new ratio was calculated based on a net profit of 37.8 billion baht last year, a 59% decrease from 93 billion in 2019, as well as last year’s revenue of 1.62 trillion baht, a 27% decline from 2019.
He said the dividend payout ratio is also based on the PTT group’s long-term strategy to add value to its businesses as it is following new business trends to seek opportunities to generate more revenue.
Mr Auttapol was speaking with shareholders via an online meeting as part of Covid measures.
Revenue and net profit slumped last year, mainly because of the impact of the pandemic and a trend towards reducing carbon emissions.
A net-zero goal requires countries to strike a balance between emissions and absorption of CO2 from the atmosphere, which is blamed for causing global warming.
Despite these factors, Mr Auttapol said he believes the company’s strategies will add value to its core businesses, as well as six new businesses that are part of its diversification.
The new businesses comprise renewable energy development, energy storage systems and life science-based businesses in pharmaceutical, nutrition and medical device sectors.