TNB announces new dividend policy

PETALING JAYA: Tenaga Nasional Bhd (TNB) will adopt a new dividend policy with effect from the financial year ending Aug 31, 2017.
In a filing with Bursa Malaysia last Friday, it said that it intends to distribute dividends based on 30-50% dividend payout ratio, based on the reported consolidated net profit attributable to shareholders after minority interest, excluding extraordinary, non-recurring items.
“TNB endeavors to adopt a dividend policy that would provide stable and sustainable dividends to shareholders while maintaining an efficient capital structure and sufficient to cater to its business prospects, capital requirements growth/expansion strategy and other factors considered relevant by the board.”
The group said its ability to pay dividends is also dependent upon dividends received from its subsidiaries, which in turn would depend on the subsidiaries’ distributable profits, operating results, financial condition, capital expenditure plans and other relevant factors.
TNB said the dividend policy reflects the board’s current views on the group’s financial and cash flow positions.
However, it will continuously review the dividend policy from time to time in light of its financial position, regulatory environment and business prospects.
Previously, TNB’s dividend was paid out based on 40% to 60% of its annual free cashflow, cashflow from operations less normalised capex and interest servicing.