Monday, February 27, 2012

UE E&C jumps to record high on dividends

Singapore-listed construction and engineering firm UE E&C surged as much as 22% to a record high after it posted strong earnings and said it would pay an attractive dividend, reported Reuters.

By 10:11 a.m. on Monday, shares of UE E&C were 16.7% higher at $0.525 with over five million shares changing hands. This was 15.6 times its average daily volume over the last five sessions.

UE E&C said its net profit last year more than doubled to $64.5 million, and it will pay a final dividend of 6 Singapore cents a share, implying a yield of 13% over its last traded price of $0.45 on Friday.

“With the payout, the dividend yield looks very attractive, and that is probably driving its share price today,” said a local dealer.

UE E&C's strong set of results was mainly due to an unexpected surge in its revenue and net profit in the fourth quarter, OCBC said in a commentary.

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