TVK's big stock of loans main factor for dividend proposal
Tuesday, March 21, 2006, 15:07
Chemical company TVK Rt’s Ft 65 billion stock of long-term loans will be the main factor the company's board considers when it decides whether or not to propose payment of a dividend on 2005's profits, CEO Árpád Olvasó said in Tuesday's issue of business daily Napi Gazdaság
. The company invited an AGM for April 20 on Monday. Although TVK's consolidated stock of long-term loans is still well below net assets, their level is still a reason for caution, Olvaso said. TVK has paid no dividend on profits in 2004, 2003, 2002 and 2001.
TVK aims to widen its price margins and operate its increased capacity in an efficient way this year, Olvasó said. But the plastics industry is fickle, and will accept higher prices only up to a certain degree, meaning it is impossible to operate at appropriate profitability if crude oil prices are extremely high, he said. The CEO noted there is also a high level of excess capacity among petrochemicals companies worldwide.