SGP hikes dividend for Q2

Synergy Grid and Development Philippines Inc. (SGP) managed to declare a higher cash dividend in the second quarter, funded from the proceeds of its recent follow-on offering (FOO).

The indirect controlling shareholder of National Grid Corp. of the Philippines (NGCP) approved this week a dividend of P0.26 per outstanding common share, or P0.22 more than what it declared in April.

The dividends are payable on July 22.

“The distribution of dividends is a testament of SGP’s commitment to its partner investors. We thank the investing public for their trust and confidence in SGP which contribute to the development of the nation’s sole transmission network operated and maintained by NGCP,” SGP vice chair Robert Coyiuto Jr. said.

SGP chair Henry Sy Jr. said that FOO proceeds last year funded this transaction.

The FOO consisted of 1.05 billion primary shares and 101 million option shares. Offer price was P12 apiece.

BDO Capital, BPI Capital and PNB Capital were the joint domestic lead underwriters and joint bookrunners of the offering.

Earlier this month, SGP announced its inclusion in the Morgan Stanley Capital International World Small Cap Index. The said index, which captures 23 developed markets, covers about 14 percent of the free float-adjusted market capitalization in each country.

In the first quarter, Synergy Grid saw its net income attributable to equity holders of the parent company fall by nearly 10 percent to P2.38 billion year-on-year as operating expenses surged by 12 percent to P4.74 billion. Topline figures, meanwhile, were almost flat at P12.18 billion.

NGCP is keen on investing about P440 billion in 211 projects in the next 13 years to address increasing demand for electricity.