Chemicals company Megachem has reported revenue of $105.2 million for the year ended Dec 31 2020, down 7.5% from the preceding year, as demand for certain products fell amid the pandemic.
However, the company enjoyed other income of $1.9 million, which consists of government grants, fair value gain from quoted securities and higher earnings from associates. As a result, the company was able to report earnings of $5.2 million, up 32% y-o-y.
“Despite the COVID-19 pandemic greatly affecting global economies and many businesses, we turned in a creditable performance,” says managing director Sidney Chew.
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“Our profitable track record remains unbroken and our diversified business model has once again been tested and proven to be resilient and sustainable.”
Just like last year, the company plans to pay a final dividend of one cent per share, on top of the 0.5 cent interim dividend already paid. The year’s planned total dividend translates into a payout ratio of 39%.
Chew says that while there are early signs of economic recovery, but the pace is dependent on the developments surrounding Covid-19.
“Meanwhile, to further build up our resilience and position ourselves to take advantage of opportunities arising from the recovery, Megachem will continue to build our strategy around Asia-centric markets, our diversified business model and deepen our presence in higher growth sectors,” he says.
Thinly-traded Megchem was last transacted at 36 cents on Feb 8.
