Looks to me that the April Operating Report shows a significant increase in netback and possible future operating profit and indicates this will continue(page 2-overview looks promising ) .
Would be interested to hear more expert views on this
Yes in line with expectations but I would like to know why they reduced the dividend (?need cash for Tauhara-construction costs could be increasing )
Free cashflow from operations rose 28% to $371m.
That equates to 72% of free cashflow, the lowest payout level since the 2017 financial year when the ratio was 61%. In the 2020 financial year, when Contact reported relatively weak results, the 39cps total dividends amounted to 97% of free cashflow. The company gives guidance of dividends at between 80% and 100% of annual free cashflow.
However I still feel it is very promising .
Could be an indication that MEL will follow with increased cashflow
Yes in line with expectations but I would like to know why they reduced the dividend (?need cash for Tauhara-construction costs could be increasing )...
Perhaps this line explains it: "He said it was pleasing to deliver investors a 35 cents per share annual dividend, down slightly from 39 cents per share in FY20. "This is in line with the dividend policy we updated in February this year where we target a pay-out ratio of between 80 per cent and 100 per cent of the average operating free cash flow of the preceding four financial years."
Perhaps this line explains it: "He said it was pleasing to deliver investors a 35 cents per share annual dividend, down slightly from 39 cents per share in FY20. "This is in line with the dividend policy we updated in February this year where we target a pay-out ratio of between 80 per cent and 100 per cent of the average operating free cash flow of the preceding four financial years."
Be interesting to see Snoopy's updated table of Operating Cash Flows and payout ratios
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
I have been unsuccessfully searching to see what discount applies to the DRP with the upcoming dividend. DRP plan only says it's up to the Directors, as far as I can see !
Can someone here enlighten me ?
When reflecting upon the reason for the 4cps annual dividend reduction for y/e 30 June 2021 it is good to remember 46.4m new shares were issued in the February institutional placement and 11.1m new shares were issued in March under the corresponding Retail Offer. While the purpose of the capital raising was mainly to facilitate the construction of the Tauhara geothermal project it is obvious these new shares did not create " earnings " commensurate with the annual ( or even the final ) dividend, in just three months or so. So not surprising the overall dividend paid on all shares was marginally down.
When reflecting upon the reason for the 4cps annual dividend reduction for y/e 30 June 2021 it is good to remember 46.4m new shares were issued in the February institutional placement and 11.1m new shares were issued in March under the corresponding Retail Offer. While the purpose of the capital raising was mainly to facilitate the construction of the Tauhara geothermal project it is obvious these new shares did not create " earnings " commensurate with the annual ( or even the final ) dividend, in just three months or so. So not surprising the overall dividend paid on all shares was marginally down.
Thanks....good perspective....I had conveniently forgotten getting some of those....thanks.
Somehow they have snuck up to being my 3rd biggest holding so I do care about their dividend.
When reflecting upon the reason for the 4cps annual dividend reduction for y/e 30 June 2021 it is good to remember 46.4m new shares were issued in the February institutional placement and 11.1m new shares were issued in March under the corresponding Retail Offer. While the purpose of the capital raising was mainly to facilitate the construction of the Tauhara geothermal project it is obvious these new shares did not create " earnings " commensurate with the annual ( or even the final ) dividend, in just three months or so. So not surprising the overall dividend paid on all shares was marginally down.
Thanks-I too had forgotten about this .
The total dividend is only 72% of free cashflow but as Jantar points out policy is an average over 3 years of 80 to 100% .
Tried to sell 2000 CEN with ASB securities, so far 23 transactions to sell 139 shares all under 20 shares per transaction, and 1861 shares to go. I have quickly amended the order.. But it's not the fault of ASB.
Originally Posted by fish
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21c 
. But it's not the fault of ASB.
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