![[South Africa] Sappi in record dividend payment as profit soars](Sappi.jpg)
[South Africa] Sappi in record dividend payment as profit soars
Paper and pulp producer Sappi has in a historic move paid dividends to its shareholders for the first time since 2008 after almost doubling its year end profit and taming net debt.
The mid sized company declared a dividend of 11 US cents per share as net profit jumped 91 per cent to $319million in the year to September. Excluding special items, earnings per share rose 68 per cent to 57c.
Net debt, which has kept the lid on the share price for some time, according to analysts, dropped 20 per cent to $1.40billion as a result of cash generation, which stood at $359m from $145m
Cash generation included proceeds from the sale of Cape Kraft and Enstra mills for $39million.
"The continued success of our strategy implementation and the benefits of a weaker rand-dollar exchange rate delivered further significant gains in earnings," CE Steve Binnie said in a statement.
"Ongoing projects to improve our cost position and enhance our competitiveness in graphic paper ensured an improved operating performance."
The stock was up 3 cent to $6 in midmorning trade on the Johannesburg Stock Exchange, giving it a market value $3 billion.
