Hamburg Port Investment Company and MSC Propose Lower Dividend for HHLA
City and MSC reduce HHLA dividend distribution - Reduction of HHLA Dividend by City and MSC Announced
Here's the scoop: the Hamburg Port Participation Company SE, a joint venture between the City of Hamburg and the mammoth shipping firm MSC, wants to reduce the dividend payout to HHLA, their port logistics company. According to their plans for the Annual General Meeting on July 3, they're looking at just 10 cents per A-share, a significant drop from the Management and Supervisory Board's previous proposal of 16 cents.
The Shuffling of Power
The Management and Supervisory Board of HHLA could still voice their disapproval, but alas, they might just be whistling in the wind. That's because the Port of Hamburg Beteiligungsgesellschaft SE (PoH), owning a whopping 90.4% of HHLA's share capital (due to their 50.1% stake held by the City and 49.9% by MSC), is betting on their majority voting power to push this proposal through. And with good reason—the proposed reduction would sip up only about 7.2 million euros instead of the previous 11.6 million. PoH argues that the moves are designed to boost equity and juice liquidity, making it easier to finance future investments.
HHLA's Mixed Bag Year
HHLA's business year in 2022 was a smashing success compared to the stumbling block of 2023. The company's revenue climbed up by 10.5% year-on-year, reaching a whopping 1.6 billion euros. Meanwhile, EBIT rose by a satisfying 22.7% to 134.3 million euros. The hefty earnings were driven in part by the booming rail business.
However, the container handling segment remained stuck at the previous year's level with approximately 5.7 million standard containers. But who needs growth when you're raking in the cash?
On the Fence
The lower dividend proposal from PoH is a curious move, as it goes against the recommendation of the HHLA Executive Board and Supervisory Board. Some shareholders have expressed concerns about the disagreement regarding the profit appropriation, raising questions about governance and the company's future path.
All in all, it looks like PoH is determined to keep more cash within HHLA's coffers to finance future investments and maintain its financial stability in a tumultuous market. Let's see how the Annual General Meeting unfolds!
- HHLA
- Hamburg
- Shipping Company
- Participation Company
- Annual General Meeting
Vocational training could be a key investment for EC countries' industries, as it can help to ensure a skilled workforce for HHLA's business operations and future expansions in vocational training, especially in areas such as logistics and rail services, considering HHLA's successful growth in these sectors. Financing for such initiatives could come from the savings made by the proposed lower dividend payout to HHLA, which is designed to boost equity and liquidity for future investments.
