BUt they have no need for the cash! (though they did note high debt due to the special dividend so maybe they could pay that down a bit but at 5.9% average and probably not a lot they can repay early ...). Should have brought forward the share buyback instead?Quote:
Originally Posted by Snoopy
Contact Energy - CEN Chart
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17-08-2015, 10:05 AMHarvey Specter
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17-08-2015, 10:10 AMHarvey SpecterWould consider them myself but they dont do dual fuel. The duel fuel discounts but the big Gentailers (and CEN in my case) the best provider to be with.Quote:
Originally Posted by horus1
What will be interesting is whether people using Flick actually change their habits (to take advantage of time of use metering/billing) and what impact that has on prices if they (and others providers) sign up a lot to these types of plans. -
17-08-2015, 10:12 AMSnoopyI would have expected there to be one week of imputation credits available at least. The special dividend was paid on 23rd June, to all those on the register on 10th June. EOFY was 30th June.Quote:
Originally Posted by Harvey Specter
That's what I would have done.Quote:
Should have brought forward the share buyback instead?
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17-08-2015, 10:19 AMHarvey SpecterNot sure you completely understand imputation credits. IC's are only earned when you pay tax which is 3 times a year. The last payment they would have made was 28 July 2015. However, they would have lost any credit balance they had on 5 August when the change in ownership happened. Any tax payments now will relate to FY16 and given they are paying out based on FCF rather than taxable profit, there will probably be a shortfall gong forward as well (hence the sharebuy back).Quote:
Originally Posted by Snoopy
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17-08-2015, 10:22 AMJantarContact were always likely to close one of their 2 big CCGT plants once the Stratford Peakers and Te Mihi were completed. CCGTs are very efficient as far as using less gas than conventional thermal plants, but they are extremely expensive to maintain. The savings in fuel does not equate to the extra maintenance costs. Plus large CCGT's are not flexible enough in operations to meet New Zealand's needs.Quote:
Originally Posted by huxley
This move should be positive for Contact, but may result in difficulties for Transpower in meeting Auckland's demand next winter. -
17-08-2015, 11:02 AMSnoopyI don't!Quote:
Originally Posted by Harvey Specter
But is it possible to make an extra tax payment over and above the three normal payments to give your company a positive tax paid balance, for the benefit of shareholders (so they can harvest the accompanying imputation credits?)Quote:
IC's are only earned when you pay tax which is 3 times a year. The last payment they would have made was 28 July 2015. However, they would have lost any credit balance they had on 5 August when the change in ownership happened. Any tax payments now will relate to FY16 and given they are paying out based on FCF rather than taxable profit, there will probably be a shortfall gong forward as well (hence the sharebuy back).
SNOOPY -
17-08-2015, 11:08 AMHarvey SpecterYes, but you obviously only pay tax you expect to use. They have obviously done the modeling and decided they needed to skip imputation for one dividend as that would result in paying too much tax. Why they didn't skip the dividend entirely is obvously for marketing purposes, especially since they announced a bond issue at the same time - they are effectively borrowing money to return capital to existing shareholders.Quote:
Originally Posted by Snoopy
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17-08-2015, 03:02 PMmacduffy
Indeed. This is how you borrow to pay a dividend without actually saying that!
"so the final dividend, payable on Sept. 15, is unimputed, and it increased the company's debt gearing by 7 percentage points to 35 percent."
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17-08-2015, 03:19 PMPSEIck, borrowing to pay dividends shouldn't be allowed.Quote:
Originally Posted by macduffy
Re the Otahuhu closure respect to the highly skilled people working there and all the best to them.
Unfortunately there was too much capacity in the system, a waste of capital disappointing for people and profits but perhaps necessary where we are now.
Re my previous comments about SAP - I note that this is mentioned in the release.
"The company also expects to improve its cost to serve retail customers following a four year project to implement a new SAS software-based customer support system. Cost to serve increased 11 percent to $13.14 per Megawatt hour of electricity in the last financial year, but the new system should deliver savings of about 10 percent."
So far the expenditure has increased the costs to serve customers on the retail side but it 'should deliver savings'.
An asset is a past expense which will generate future profits but SAP may only be a past expense if it was as poorly implemented in retail as it was on the sites. -
18-08-2015, 08:53 AMSnoopyI was thinking that CEN could pay more provisional tax than they expect to use for this income year, then transfer any excess to last years terminal tax or the first installment of next years provisional tax. I could do that as a private person. But whether a company could do that, I am not sure.Quote:
Originally Posted by Harvey Specter
Yes I agree, skipping a final dividend would look bad on their multi year chart showing CEN as a 'steady dividend payer'. But why couldn't they have done a cash capital return of an equivalent amount to what the dividend would be? That would be much better for NZ shareholders from a tax perspective I think.Quote:
They have obviously done the modeling and decided they needed to skip imputation for one dividend as that would result in paying too much tax. Why they didn't skip the dividend entirely is obvously for marketing purposes.
SNOOPY