Genting Singapore shareholders can only look forward to cash dividends in two to three years time, provided the company remains profitable and has paid off its whopping $4.2-billion debt.
The company posted a hefty net profit of $397 million in the quarter ended June - overturning a $51 million loss in the previous year.
Be thta as it may, Genting remains unable to declare any cash dividends as it is tied to a loan structure which restricts the firm from paying any dividends until next year or after the loan has been fully paid off.
Some shareholders are quite happy about this as they perceived that by not paying dividends, the funds remain in the company and this can be used to repay loans or finance any capital expenditure, or used as loan repayment.
The $4.2-billion loan was secured in Feb 2008 and funded about 60 per cent of the development of Resorts World Sentosa.
Genting Singapore's share price rose three cents or two per cent yesterday to close at $1.55.
Many expect it to move beyond $2.00 in the medium term.
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