INCO to distribute dividend again after 7 years
JAKARTA. For the first time since 2014, PT Vale Indonesia Tbk (INCO) would distribute the cash dividend again, this time worth USD 33 million, taken from its 2020 proceeds.
The Financial Director of Vale Indonesia, Bernardus Irmanto, explained that the said amount equals 40% of its net profit in 2020. Last year, INCO reported a net profit of USD 82.82 million.
According to Irmanto, the decision was made after considering that the INCO’s obtained cash was at a decent level by the end of 2020 and the improved nickel price, driving the company’s performance forward. By the end of 2020, its cash and cash equivalents were recorded at USD 388.68 million, growing from USD 249.04 million at the beginning of the year. “The first consideration was our cash in 2020. We accumulated the cash high enough by the end of 2020,” Irmanto claimed on Thursday (29/4).
Another consideration for INCO to issue dividend distribution is the need to fund strategic projects, such as Bahadopi and Pomalaa. Currently, Vale Indonesia is finishing up the negotiation for the said projects. The Pomalaa project is in the main negotiation step and is expected to achieve the final investment decision (FID) by next year. (AM/ZH)