Unipetrol Falls Most in Seven Years as Dividend Plan Disappoints

  • Czech oil refiner said it will pay out 5.52 koruna per share
  • Dividend smaller than some investors expected, Komercni says

Unipetrol AS slumped the most in seven years after the Czech oil refiner’s dividend proposal fell short of expectations.

The stock tumbled 5.8 percent on Monday after the unit of Poland’s PKN Orlen SA said late on Friday it would pay out 5.52 koruna ($0.23) per share. While that’s the first Unipetrol dividend since 2008, it means the company that swung back to profit last year will distribute less than a half of its 2015 net income. Investment company J&T Group, which owns almost 24 percent of Unipetrol, had sought a dividend of at least 12 koruna per share.

“The dividend yield will be only 2.9 percent, despite earlier speculations that the company could afford to pay out much more,” said Josef Nemy, an equity analyst at Komercni Banka AS in Prague, which stopped covering Unipetrol last year. “The important thing will be the Unipetrol management’s future dividend policy.”

The stock closed at 177.15 koruna in Prague, the worst performance on the benchmark PX equity index and bringing Unipetrol’s market capitalization to 32.1 billion koruna. Share turnover on Monday was 50 percent of the daily average of the past three months. The stock price is still up 14 percent over the past 12 months.

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