KGHM pays out PLN 900m of dividend for the state

APA - Austria Presse Agentur
16-06-2006, 12:34

Warsaw (Puls Biznesu) – The Ministry of the Treasure made KGHM pay out nearly the whole last year’s income as dividend. Trade unions protest, shareholders welcome the decision.

Warsaw (Puls Biznesu) – The Ministry of the Treasure made KGHM pay out nearly the whole last year’s income as dividend. Trade unions protest, shareholders welcome the decision.

During the GSM of KGHM, Poland’s listed copper producer, it was decided to pay out 87 percent of last year’s net income as dividend. The net income amounted to PLN 2.29 billion (EUR 567.9m). The management proposed to pay out half of it, i.e. PLN 1.1 billion, or PLN 5.5 a share. Marek Fusinski, the deputy CEO of KGHM explained that this division was included in the company’s investment plan. The latter provides for PLN 5 billion of investment in the years 2006-2010.

“The situation in the company allows to pay out PLN 2 billion”, Wlodzimierz Luty, the representative of the Ministry of the Treasure, the owner of nearly 45 percent in the copper producer, said.

Earlier, Pawel Szalamacha, the deputy Minister of the Treasure, stressed that KGHM had PLN 1.5 billion of net income in the first five months of this year.

“You don’t discuss your owner’s decisions”, the representatives of KGHM management said.

According to Marek Fusinski, the company will have to borrow money to invest. Trade unions are outraged.

“I don’t know how the company will do when copper prices fall”, Jozef Czyczerski, the head of the Mining and Copper section of Solidarnosc trade union commented.

“This is the worst decision ever made in KGHM. I still can’t believe its true”, Ryszard Zbrzyzny, the head of the Trade Union of Copper Industry Employees ZZPPM added.

Shareholders will receive the dividend on August 2.

“High dividend is good news for investors”, Michal Marczak, DI BRE Bank analyst believed.

Last year, KGHM paid out PLN 400m of dividend. In the previous three years, there was no dividend. In 2004, KGHM had PLN 1.3 billion of net income, up from PLN 529m a year earlier.

(PLN 1 = EUR 0.248)

 

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Podpis: APA - Austria Presse Agentur

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