Global investment firm Blackrock, based in New York, United States, has been observed accumulating shares of PT Adaro Energy Indonesia Tbk (ADRO) ahead of dividend distribution.
ADRO shares were reportedly acquired by Blackrock for two consecutive weeks (March 8 - March 21, 2024), totaling 58,780,285 shares. As a result, Blackrock's total ownership of ADRO now stands at 518,216,846 shares.
Blackrock's purchase price for ADRO shares is estimated to be around Rp2650 - Rp2670 per share, considering ADRO's price movement over the past two weeks has not fluctuated significantly.
The US investment firm is likely acquiring ADRO shares in anticipation of the dividends expected to be distributed this year.
CNBC Indonesia estimates that ADRO could offer attractive dividends this year despite recording a decline in net profit performance on an annual basis.
As known, ADRO accumulated a net profit of US$1.64 billion or approximately Rp25.34 trillion throughout 2023, which is a 34.16% year-on-year decrease compared to the previous period.
As a result, ADRO's EPS declined from 1213 to 790. It is worth noting that ADRO already distributed interim dividends in January this year, amounting to around Rp200 per share with a yield of 17.08%. This value has already reduced a quarter of ADRO's EPS.
Considering a conservative DPR of 50%, the remaining dividends to be distributed would be around Rp195 per share, with a potential yield of 7.35% based on a share price of Rp2650 per share.