Petrolimex Mechanical (PMS) Declares Record 39% Cash Dividend for 2025

Overview

Petrolimex Mechanical JSC (PMS), a subsidiary of Petrolimex Group, has announced a 39% cash dividend for 2025, the highest in its history. The ex-date is April 23, with payment expected from May 15, totaling approximately 28 billion VND. This marks a continuation of the company’s nearly 20-year track record of stable cash dividends.

Key Facts

• Dividend rate: 39% (3,900 VND per share) for 2025, the highest ever.
• Ex-date: April 23, 2025; record date: April 24, 2025; payment from May 15, 2025.
• Total payout: approximately 28 billion VND, based on 7.2 million outstanding shares.
• Previous record: 33% in 2016.
• Largest shareholder: Petrolimex Construction and Trading One Member Co., Ltd (a Petrolimex subsidiary) holds 46.17%, receiving ~13 billion VND.
• Second largest shareholder: Tran Thi Hien holds ~11%, receiving ~3.2 billion VND.
• Current share price (April 17): 40,800 VND, implying a dividend yield of 9.56%.

What Happened

Petrolimex Mechanical JSC (PMS) announced on April 17 that its board approved a 39% cash dividend for 2025, the highest in the company’s history. The ex-date is set for April 23, with the record date on April 24 and payment starting May 15. The company has maintained a consistent cash dividend policy for nearly 20 years, since 2005. The previous record was 33% in 2016.

PMS was originally established as Thong Nhat Mechanical Workshop under the Ministry of Supply, later equitized in 1999 with Petrolimex becoming a major shareholder. Currently, Petrolimex Construction and Trading One Member Co., Ltd (a Petrolimex subsidiary) holds 46.17% of PMS shares.

Market Context

PMS shares closed at 40,800 VND on April 17, giving the company a market capitalization of 293 billion VND. The stock trades on the HOSE exchange. The 9.56% dividend yield is attractive relative to the broader market, where average yields are lower. PMS’s 2026 business plan targets revenue of 1,184 billion VND (down 4% YoY) and pre-tax profit of 32 billion VND (down 21%), yet the company still expects a minimum 12% dividend.

Strategic Significance

The record dividend underscores PMS’s strong cash generation and commitment to shareholder returns, even as it forecasts lower earnings for 2026. The high payout may signal management’s confidence in the company’s financial stability, though the planned profit decline warrants monitoring. The dividend also provides a significant cash inflow to its parent company, Petrolimex Group, which indirectly benefits from the payout.

What to Watch

• Q1 2025 earnings release to assess underlying business momentum.
• 2026 half-year results to see if profit decline materializes as forecast.
• Any changes in Petrolimex Group’s ownership or strategic direction for PMS.
• PMS’s ability to maintain or increase dividends in future years given the 2026 profit guidance.
• Share price reaction around the ex-date and potential for dividend-driven trading.