OREANDA-NEWS. April 20, 2010. Vice-president for corporate communications of Far Eastern Shipping Company, Stanislav Vartanyan, said FESCO would not pay out dividends for 2009 and instead allot its last-year income to business development. April 15 was the AGM cutoff date.

We are neutral about the news and believe it was anticipated by the market. FESCO has not made any dividend payouts since 2002, allocating retained earnings to its large-scale investment program. In addition, this year the company has to refinance short-term debts worth more than USD 300 million. In the coming few years, FESCO is likely to pursue an identical dividend policy, due to the need to carry on business development.

The fair price for one common share in Far Eastern Shipping Company (RTS: FESH) is USD 0.63 with a 59% upside.