Chemical Company of Malaysia Berhad Annual Report 2019

16.1 19.7 -3.6 -17% 26.4 30.0 -3.6 For the year under review, the Group registered recurring profit before tax of RM30.0 million as compared to RM35.5 million in FY 2018. Net recurring profit after tax for FY 2019 stood at RM19.7 million as compared to RM23.8 million for FY 2018. The decrease of RM5.5 million (or 15%) and RM4.1 million (or 17%) respectively for PBT and PAT was attributable mainly due to margin squeezes resulting from the fall in the average chlor-alkali product selling prices by up to 28% in comparison to the preceding year. The decline in average selling prices was mainly due to the disruption in demand in the region as a result of the ongoing US-China trade dispute as well as softer global economic growth. The margin squeeze however was cushioned by lower finance costs amounting to RM14.4 million as a result of the completion of the Group’s de-gearing exercise. This resulted in a return on shareholders’ equity (ROE) of 4.9% as at 31 December 2019. For FY 2019, CCM’s basic earnings per share (EPS) stood at 9.17 sen against EPS of 15.32 sen for FY 2018. In respect of FY 2019, CCM paid out a single-tier interim dividend of 3.0 sen per share amounting to RM5.0 million. The Board has also approved a second interim dividend of 2.00 sen per ordinary share amounting a dividend pay-out of approximately RM3.4 million to be paid on 19 June 2020. Altogether, these dividend payments represent a pay-out ratio of 54.5% of our Profit After Tax and Minority Interest (PATAMI) and will amount to a total dividend pay- out of RM8.4 million or 5.0 sen per share in respect of FY 2019 (FY 2018: RM15.1 million or 9.0 sen per share). PROFIT BEFORE TAX (PBT) (RM’ mil) PROFIT AFTER TAX (PAT) (RM’ mil) 51.6 16.1 35.5 30.7 6.9 23.8 FY 2019 FY 2019 Recurring FY 2018 FY 2018 -15% Non-Recurring * Non-recurring profit in relates to gain/loss from the disposal of land and recovery from the fertilisers business (over-accruals, debtors, scrap sales); Non- recurring profit in FY 2019 relates to the net gain on the disposal of the land in Nilai and impairments made on a debtor (which had undergone liquidation), and underutilised assets. 19 ANNUAL REPORT 2019 BUSINESS OVERVIEW GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION