Oman-listed firms to maintain dividends at OMR350m

Muscat: Companies listed on the Muscat Securities Market (MSM) are expected to maintain total dividends for 2015 at the previous year’s level of above OMR350 million.
According to market sources, around 55 to 60 companies have already announced their cash and stock dividends, which totals around OMR325 million. Another 15 to 20 companies are expected to announce dividends in the coming couple of weeks.
As many as 130 companies are listed on the Muscat Securities Market, but a section of listed firms will not offer any dividends due to losses.
“Broadly, dividend announcements are in line with the previous year,” said Suresh Kumar, head of research at Al Maha Financial Services.
“Most of the companies have maintained their dividends, which is based on their 2015 earnings,” added another senior market analyst, who did not want to be named.
Suresh Kumar said that although earnings of certain industrial companies have been affected due to an increase in natural gas prices, the corporate sector in general had tried to maintain dividend payouts.
“For instance, the Oman Cement Company, Al Anwar Ceramics, Al Maha Ceramics Company and Oman Cables Industry have maintained their dividends.” However, Raysut Cement Company reduced its cash dividend for 2015.
In case of the banking sector, while some banks have raised their dividend payouts marginally, few others had maintained dividends at the previous year’s level. In general, banks are offering better dividends for 2015 than the previous year.
Traditionally, telecommunication, oil marketing firms and utilities are the dividend pay masters in Oman.
The five major blue chip firms that paid maximum cash dividend on the local bourse are the Oman Telecommunications Company (115 per cent, including 55 per cent interim dividend), Shell Oman Marketing (106 per cent), Oman Refreshment Company (100 per cent), Al Maha Petroleum Products Marketing Company (100 per cent) and the Oman Cables Industry (90 per cent). Several firms have announced a combination of both cash and stock dividends.
Although most of the annual general meetings are scheduled for next month, investors will receive actual payments only by the first week of April.
Market experts believe that 25 to 30 per cent of the total dividend money is expected to come back to the bourse as reinvestment, which will depend on investor sentiment, market outlook and fundamentals of companies.
However, dividend related adjustment or correction could be seen towards the end of March.
But the local bourse is expected to recover when the dividend money comes back to the bourse in April.