Mozambique: HCB’s 2021 shareholder dividend – Watch

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Mozambique: HCB’s 2021 shareholder dividend – Watch

7:06 CAT | 27 May 2021

Photo: TVM

Cahora Bassa Hydroelectric (Hidroeléctrica de Cahora Bassa – HCB) last year paid a dividend of 0.064 meticais per share to its more than 16,000 shareholders. This year, the company has announced, it will pay 0.111 meticais per share, an increase of 73.6%.

Although the dividend has grown, the amount remains negligible, as it was last year, drawing criticism from shareholders and beyond. From this amount, investors must subtract 10% of taxes IRPC or IRPS and other possible bank costs per three-meticais share.

After that, the shareholder is left with crumbs, although the distribution made by HCB is fair, considering the number of shareholders and their respective holdings. (The company divides the total dividend amount by the number of investor shares.)

In a statement, HCB says it “will proceed, on the 14th of June 2021, to pay about 150 million meticais in dividends to the series B shareholders, namely citizens, companies and institutions who entered in society as a result of the public offer for sale of HCB shares held in 2019”.

The HCB communique also clarifies that “the payment of the 2021 dividends results from the approval of the application of the results in the amount of 9.8 billion meticais, 40% of which was allocated to free reserves, 30% to unrealised profit reserves and 30% to dividends”.

Watch the TVM report below.