Chemicals company Megachem has reported revenue of $105.2 million for the year ended Dec 31 2020, down 7.5% from the preceding year, as demand for certain products fell amid the pandemic.

However, the company enjoyed other income of $1.9 million, which consists of government grants, fair value gain from quoted securities and higher earnings from associates. As a result, the company was able to report earnings of $5.2 million, up 32% y-o-y.

“Despite the COVID-19 pandemic greatly affecting global economies and many businesses, we turned in a creditable performance,” says managing director Sidney Chew.

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“Our profitable track record remains unbroken and our diversified business model has once again been tested and proven to be resilient and sustainable.”

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Just like last year, the company plans to pay a final dividend of one cent per share, on top of the 0.5 cent interim dividend already paid. The year’s planned total dividend translates into a payout ratio of 39%. 

Chew says that while there are early signs of economic recovery, but the pace is dependent on the developments surrounding Covid-19. 

“Meanwhile, to further build up our resilience and position ourselves to take advantage of opportunities arising from the recovery, Megachem will continue to build our strategy around Asia-centric markets, our diversified business model and deepen our presence in higher growth sectors,” he says.

Thinly-traded Megchem was last transacted at 36 cents on Feb 8.