Mighty River Power dishes special treat for shareholders
The gentailer has just announced a special dividend, ahead of its annual general meeting tomorrow
Hot Topic
Hawke’s Bay
Mighty River Power has announced a special dividend of 5c per share ahead of its annual meeting tomorrow.
While it was thought the company might announce a special payout at its AGM, it announced this afternoon that the fully imputed special dividend would be paid to the more than 102,000 shareholders on December 11.
This is on top of its ordinary dividend of 13.5 cents per share already paid, and comes on the back of a solid full year result for the year to June 30. The company reported 29% growth in annual operating earnings to $504 million and net profit of $212 million.
Chairwoman Joan Withers says the special dividend is worth about $70 million and was confirmed as part of Mighty River Power’s ongoing capital management review at its board meeting today.
Positive 2014 results and decisions around capital structure, including a successful $300 million capital bond offer, “have given us some flexibility and options that have allowed us to pay this special dividend to our shareholders,” she said in a statement.
The company will also provide an update on capital management initiatives and dividend policy at the AGM tomorrow, she says.
Mighty River Power, which was partially privatised May last year and reported on August 20, performed slightly stronger than its prospectus.
Earnings before interest, tax, depreciation, amortisation and changes in the value of financial instruments were 1% ahead of the prospectus forecast at $504 million in the year to June 30, and 29% ahead of the result from the previous financial year.
On a net profit after tax basis, the company reported earnings of $212 million, up 84% on the previous year and 33% ahead of prospectus forecasts, with the year-on-year difference explained largely by $97 million of writedowns on its investments in geothermal operations and prospects in the US and Chile in the 2012/13 financial year.
Calida Smylie
Wed, 05 Nov 2014
Wed, 05 Nov 2014
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Mighty River Power dishes special treat for shareholders
42835