Semirara declares chunky P3.50/share special cash dividend for FY22

Semirara Mining and Power [SCC 36.65, up 4.0%; 320% avgVol] [link] declared a P3.50/share special cash dividend yesterday out of its unappropriated retained earnings from FY22. This is in addition to the P1.80/share in regular dividends and P1.70/share in special dividends that SCC already declared out of FY22’s unappropriated retained earnings for FY22, for a total of P7.00/share. Based on Monday’s closing price of P35.25, that’s a 19.9% yield. The record date is October 23, with a payment date of November 8.

MB bottom-line: This will help ease the pain of the buyers that swarmed SCC in Q3 last year when the stock’s price was floating up in the P40-42 range. For those buyers, the yield is less but still a healthy 16% even for those that bought during the peak. SCC’s stock price has fallen off a bit with the price of coal, which has basically given back all of the price gains that came with Russia’s failed invasion of Ukraine. Demand for coal is expected to be flat for the remainder of 2023 and 2024, but it’s not impossible for there to be some price action should world events impact the supply. That said, I think it might be wishful thinking to expect SCC to provide a repeat performance given coal’s price decline and similar downtick in the spot price of electricity. 

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