Headwind: Redevelopment of Kupe
Quote:
Originally Posted by
Snoopy
Did you consider the reason that Genesis does not return all of their free cashflow to customers is that they need to retain some of it for reasons not related to building a new power station?
I hadn't caught up with this:
"Genesis also owns 46 percent of the Kupe oil and gas field and is preparing for a $30 million, two-year investment in onshore compression to increase production."
( http://www.sharechat.co.nz/article/7...-waverley.html)
So $15m per year over 1,000m shares equals 1.5cps. More of that Genesis 'free cashflow' is disappearing. It looks like the issue of a dividend cut has now moved from 'if' to 'when'!
SNOOPY