Coal firms pay higher dividend despite lower profit

Five of the six coal-related companies listed on the Indonesia Stock Exchange continue to pay higher, or the same, amount of dividend, this year despite lower net profit booked for last year amid the lingering sluggish coal market, Bisnis Indonesia reported on Friday.

The paper said that PT Adaro Energy Tbk, PT Petrosea Tbk, PT Bukit Asam Tbk, and PT Samindo Resources Tbk have announced higher dividend for 2013 financial report, while PT Indo Tambangraya Megah Tbk maintained the same amount of dividend for the 2012 financial year.

Analysts said that the higher dividend was aimed at helping to maintain interest in the shares of the companies amid the negative sentiment triggered by the weak coal price. Companies are also able to pay higher dividend because they allocate conservative capital expenditure for this year given the weak coal market. (*)