MISC Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS HIGHLIGHTS OF THE YEAR OUR BUSINESS OUR LEADERSHIP OUR PERFORMANCE OUR COMMITMENT TO SUSTAINABILITY OUR GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 50 TH ANNUAL GENERAL MEETING 265 MISC BERHAD ANNUAL REPORT 2018 264 12. DIVIDENDS (CONT'D.) A fourth tax exempt dividend in respect of the financial year ended 31 December 2018 of 9.0 sen per share amounting to a dividend payable of RM401,737,000 will be paid on 26 March 2019. The fourth tax exempt dividend is not reflected in the current year's financial statements. The dividend will be accounted for in equity as an appropriation of retained profits in the financial year ending 31 December 2019. 10. TAXATION (CONT'D.) The Government had proposed to reduce the exemption for the shipping sector provided under Section 54A of the Income Tax Act, 1967 (“the Act”) from 100% to 70% of statutory income effective from Year of Assessment (“YA”) 2012. Subsequently in December 2015, the Government has decided to defer the implementation of the above proposal to YA2021. The Group has available options to ensure that the Group continues to enjoy the tax benefit arising from shipping income. 11. EARNINGS PER SHARE Basic earnings per share is calculated by dividing profit for the year attributable to ordinary equity holders of the Corporation by the weighted average number of ordinary shares outstanding during the financial year. The Group does not have any financial instrument which may dilute its basic earnings per share. Group 2018 2017 Profit after taxation attributable to equity holders of the Corporation (RM'000) 1,311,503 1,981,509 Number of ordinary shares in issue ('000) 4,463,794 4,463,794 Weighted average number of ordinary shares in issue ('000) 4,463,794 4,463,794 Basic earnings per share (sen) 29.4 44.4 Diluted earnings per share (sen) 29.4 44.4 12. DIVIDENDS 2018 RM'000 2017 RM'000 Dividend recognised during the year: In respect of financial year ended 31 December 2016: Second tax exempt dividend of 20.0 sen per share - 892,759 In respect of financial year ended 31 December 2017: First tax exempt dividend of 7.0 sen per share - 312,466 Second tax exempt dividend of 7.0 sen per share - 312,466 Third tax exempt dividend of 7.0 sen per share - 312,466 Fourth tax exempt dividend of 9.0 sen per share 401,741 - In respect of financial year ended 31 December 2018: First tax exempt dividend of 7.0 sen per share 312,466 - Second tax exempt dividend of 7.0 sen per share 312,466 - Third tax exempt dividend of 7.0 sen per share 312,466 - 1,339,139 1,830,157