STRABAG Company News - Dividend cut despite stellar net profit
Disappointing dividend proposal: Ahead of the release of its FY 19 figures on April 29, STRABAG announced that the dividend proposal will amount to just EUR 0.90, considerably short of our estimate EUR 1.40 and also well below the FY 18 DPS of EUR 1.30. The cut comes despite a substantially better than expected net income of EUR 372 mn, almost 20% north of RCBeEUR 315 m. Although no further details were provided, this speaks for a much better operational performance in 4Q. The company acknowledged that pursuing its normal payout policy would have warranted a dividend of up to EUR 1.80 but is taking a cautious approach due to the Covid-19 crisis. The payment, which of course is supported by the syndicate consisting of Raiffeisen/UNIQA, Rasperia and Haselsteiner Group, is conditional on liquid assets (includes securities, cash in hand and bank deposits) amounting to at least EUR 1 bn as at 31 October. We think this condition should be comfortably met. The dividend payout date will be 30 November and the ex-dividend day will be 26 November.
Strabag is a technology group for construction services. Co. provides its services in four operating segments: North + West, which executes construction services of nearly any kind and size with a focus on Germany, Poland, the Benelux countries and Scandinavia; South + East is focused on Austria, Switzerland, Hungary, the Czech Republic, Slovakia, Russia and neighbouring countries as well as on the region South-East Europe; International + Special Divisions, which include on the one hand, the field of tunneling and the concessions business; and Other, which contains the intra-company Central Divisions and Central Staff Divisions.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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