PMCR's dividend record day is April 17, however, assuming standard T+3 settlement and Easter Monday Holiday on April 17 (Prague Stock Exchange is closed), today is the last day PMCR trades with a right to receive a dividend from the accounting year 2005 and to attend its AGM held on April 24. In a filling to Deutsche Boerse, PMCR proposes a dividend of CZK1,112 per share (-31% y/y), which implies a 100% pay-out (unconsolidated) and is inline with PMCR’s historic practice. The implied dividend yield is 6.9%. The dividend must be approved by the AGM.
The market has been speculating that PMCR may pay an extra dividend. Based on 2005 statements, PMCR should have retained earnings of just above CZK1bn or cCZK400 per share. While we cannot fully rule out a dividend payment above 100% of unconsolidated net income, we see it as unlikely given the currently unfavourable market conditions; i.e. excise tax hikes, cheaper imports and less favourable product mix.