Nuplex boosts dividend 28%, lifts payout range
The company expects to declare a final dividend of 17c, taking its total payment to 27c this year.
Nuplex Industries [NZX: NPX], the specialty chemical and resin maker, expects to increase its annual dividend by nearly a third and has lifted payout ratio to 60% of profit.
The Auckland-based company expects to declare a final dividend of 17c, taking its total payment to 27c this year, up from 21c in the 2014 year, it said in a statement. Nuplex also lifted its dividend payout ratio to a minimum 60% of net profit, from a previous range of 55-65%.
Earlier this month, the company lifted annual guidance for operating earnings before interest, tax, depreciation and amortisation to between $130-134 million in the 12 months ending June 30, up from its February guidance range of $115 million to $125 million and ahead of the $125.7 million it reported in 2014.
Nuplex has been cutting back operations in Australia and New Zealand, where a weaker performance is weighing on growth in Asia, America and Europe. In November it sold its Australasian agency and distribution business Nuplex Specialties and its plastic additives business, Nuplex Masterbatch, for $A127.5 million to focus on global resins. It used the sale proceeds to reduce debt and plans to buy back as much as 5% of its shares.
"The sale of Nuplex's ANZ-focused Specialties and Masterbatch businesses at the end of 2014 provided a timely opportunity for the board to review Nuplex's strategy and its capital management," chairman Peter Springford said. "The capital management review concluded the company is in a position to undertake the share buyback, and to grow dividends while maintaining a strong balance sheet and the capacity to invest in organic growth in the future."
The company also benefited from cheaper input costs for its resins on falling global oil prices.
Nuplex shares closed at $3.68, the highest level since February 2011 and have gained 23% since the start of the year.
(BusinessDesk)
Suze Metherell
Fri, 22 May 2015
Fri, 22 May 2015
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Nuplex boosts dividend 28%, lifts payout range
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