Contact Energy - CEN Chart

[trader_jackson]

i mentioned on the power shares thread a while ago that peak dividends had been met , but the fact they are able to maintain them in a bad year is truely a reflection of a well run company.

Not sure borrowing to pay dividends is a reflection of a "well run" company...
Gearing was 31.4% at 30 June 2020, up from 28.3% at 30 June 2019, and $46m more was borrowed in FY20. It was either cut the final dividend by about a third, or borrow more... the "well run" company decided to borrow more. Not sure borrowing more and more to pay increasing (or even maintain) dividends is a great thing long term for a utility...

[bull....]

Not sure borrowing to pay dividends is a reflection of a "well run" company...
Gearing was 31.4% at 30 June 2020, up from 28.3% at 30 June 2019, and $46m more was borrowed in FY20. It was either cut the final dividend by about a third, or borrow more... the "well run" company decided to borrow more. Not sure borrowing more and more to pay increasing (or even maintain) dividends is a great thing long term for a utility...

46m was borrowed for investments so that is good borrowing

[trader_jackson]

46m was borrowed for investments so that is good borrowing

But they could have paid a smaller dividend and not needed to borrow anything?
Nice spin that is for sure.
I note market consensus was (an already low) $459m EBITDA... actual came in at $451m... bit like borrowing to fund dividends, not sure how the market would view this as good news, but maybe.

[dibble]

Not sure borrowing to pay dividends is a reflection of a "well run" company...
Gearing was 31.4% at 30 June 2020, up from 28.3% at 30 June 2019, and $46m more was borrowed in FY20. It was either cut the final dividend by about a third, or borrow more... the "well run" company decided to borrow more. Not sure borrowing more and more to pay increasing (or even maintain) dividends is a great thing long term for a utility...

Following that logic should any company with long term debt pay a dividend? The gearing is usually what contributes to such a large div, CEN's ROE is roughly 6% so borrow at 3-4% then increase dividend and hope nothing goes wrong with cashflow (that services the debt).

[tomm]

https://www.nzherald.co.nz/business/...ectid=12355074
While both the Government and Meridian pointed to the finality of the decision, analysts have speculated that constraints in the transmission network, which could force Meridian and Contact Energy to have to spill water from South Island hydro stations for several years, could set conditions for the closure to be delayed for several years.

"Meridian has put a confidential proposal to NZAS with the objective of allowing NZAS to close down the smelter over a longer period of time - Meridian has proposed up to four years," the company told the NZX.
"To date that proposal has not been accepted and Meridian's current expectation is that the smelter will close on 31 August 2021 as previously announced by NZAS."

[tomm]

Contact reported a drop in its net profit to $125 million in the year to the end of June.
That was down from a $345m profit the previous year, when its result was boosted by a $170m gain from the sale of its Rockgas business and its Ahuroa gas storage facility.
Its underlying profit from continuing operations was down 22 per cent at $129m.

[see weed]

Contact reported a drop in its net profit to $125 million in the year to the end of June.
That was down from a $345m profit the previous year, when its result was boosted by a $170m gain from the sale of its Rockgas business and its Ahuroa gas storage facility.
Its underlying profit from continuing operations was down 22 per cent at $129m.

That is what is written. The question is-- Are you looking forward to your nice big juicy 23c div ? I know I am.

[RTM]

That is what is written. The question is-- Are you looking forward to your nice big juicy 23c div ? I know I am.

Yes...I am looking forward to my dividend. Its a beauty. I am not an accountant (as I am sure my questions shows) and I have a couple of questions, can anyone help ?

I see they have paid out $280mil in Dividends for the year.
I also see these three statements:
Free cash flow of 290million..sounds good, lots of money.
Generated profit of $125 million EBITDAF (I'm ok with what EBITDAF means )
Continuing operations of 451 Million.
Where is the divi paid from. Is the profit of 125mil after the dividend has been paid ?

Anyone got a quick description of "Continuing operations of 451 Million " ?

[tomm]

Yes...I am looking forward to my dividend. Its a beauty. I am not an accountant (as I am sure my questions shows) and I have a couple of questions, can anyone help ?

I see they have paid out $280mil in Dividends for the year.
I also see these three statements:
Free cash flow of 290million..sounds good, lots of money.
Generated profit of $125 million EBITDAF (I'm ok with what EBITDAF means )
THIS IS WHY:

Davies said Contact's result was reasonably solid, ‘’no real surprises and although some were picking a little bit of a cut in dividend, that has been maintained. Obviously in this environment, if you can keep paying dividends than investors are going to be happy'’.
Continuing operations of 451 Million.
Where is the divi paid from. Is the profit of 125mil after the dividend has been paid ?

Anyone got a quick description of "Continuing operations of 451 Million " ?

THIS IS WHY:

Davies said Contact's result was reasonably solid, ‘’no real surprises and although some were picking a little bit of a cut in dividend, that has been maintained. Obviously in this environment, if you can keep paying dividends than investors are going to be happy'’.

[macduffy]

Yes...I am looking forward to my dividend. Its a beauty. I am not an accountant (as I am sure my questions shows) and I have a couple of questions, can anyone help ?

I see they have paid out $280mil in Dividends for the year.
I also see these three statements:
Free cash flow of 290million..sounds good, lots of money.
Generated profit of $125 million EBITDAF (I'm ok with what EBITDAF means )
Continuing operations of 451 Million.
Where is the divi paid from. Is the profit of 125mil after the dividend has been paid ?

Anyone got a quick description of "Continuing operations of 451 Million " ?

No, profit is calculated before the dividend is paid.

"Continuing operations " describes just that, as distinct from operations that were discontinued (sold, closed down or otherwise disposed of ) during the year.