NWF - NZ Windfarms

[Grimy]

We've received a dividend in September the last 2 years. Fingers crossed there is an announcement soon re this September.

[Getty]

Wonder how the dividend policy considerations are going - didn't NWF hint this was being looked at a while back ?

They may retain a dollar or two for the turbine replacement fund,

[Grimy]

.0045 cent dividend payable 22nd September.

[nztx]

.0045 cent dividend payable 22nd September.

1.00 cps total Gross Div for year, No Tax Credits & The Taxman gets to flog 33% of it out, before it lands in stakeholder's hands

Think I like the year before's answers even better

Those derivatives have certainly come back to bite NWF very hard on the b*m, even with the increased Sales revenue

[Southern Lad]

What reflections do followers have on today’s announcements?

I haven’t followed for awhile so the immediate comments and questions I have for you NWF followers are:

- current year financial performance a little disappointing, wind conditions have been a bit benign of late.
- dividend well down on where it’s been the last couple of years
- is the a clear definition of free cash flow for the new dividend policy?
- what are the expectations for the FY22 dividend level?
- Pricing for FY22 production under the VVFPA is an improvement on FY21.
- repowering and reconsenting the existing site is a massive project, with significant capex required?
- does NWF have the financial backing to per-sue the development of additional wind farms?
- is the current shareholder base good for a significant capital raise or do existing shareholders end up getting massively diluted as the NWF chases a large market placement?
- what is the impact on future share price of having 23,000 shareholders on the Sharesies platform - will the share price be more volatile?
- what does this all mean in terms of where the share price is headed in the short term?

[Grimy]

Hi Southern Lad.
I'm not sure about the repowering and reconsenting being brought up now, I thought with the in-house maintenance, parts improvement, etc that the units had a fairly long life ahead of them. I hope they do.
If they decided to go to something different (which I guess is really the only option) then the current tower sites, roading, etc may all have to be redone.
As you say a massive job, and after the battles with the current unit consents, I don't know how they would get on with the neighbours with bigger units - if that's the way they want to go.
I'm sure it will be years before any of this happens though.
I would obviously like a higher dividend, but as my average price is about 50% of today's share price I can't complain about the return.
I am slightly nervous about sp stability. I have sold down a bit over the last couple of months, but am still happy to be a holder (since day one).

[nztx]

How do NWF Dividends paid look in comparison to NWF's bottom line after tax across the past 5 years ?

Gut feeling suggests dividends may be in excess of Net Surpluses by some distance, if not wrong ?

I suspect there were Imputation credits attached to the maiden 2018 dividend

[nztx]

Dividends paid by Financial Year:

2017 - Nil
2018 - 0.85 cps - $2.449 m
2019 - 1.05 cps - $3.024 m
2020 - 1.80 cps - $5.184 m
2021 - 1.00 cps - $2.880 m

Total - 5 years - $13.537 m

Net Profit (Loss) Pre Tax by Year:

2017 year $ 910 k
2018 year $ 780 k
2019 year $ 718 k
2020 year $2.401m
2021 year $ 501 k

Total - 5 years $ 5.310 m

Net Profit (Loss) After Tax by Year:

2017 year $ 649 k
2018 year $ (14.747) m (after Tax of $15.527 m)
2019 year $ 627 k
2020 year $1.727 m
2021 year $ 311 k

Total - 5 years ($ 11.433) m (Negative)

Perhaps someone could check my rough figures please ?

Thanks

[Jantar]

….

Perhaps someone could check my rough figures please ?

Thanks

Without checking your figures, I believe they are correct. But if you carry out the same exercise wit any of the generators (CEN, GNE, MCY, MEL ) you will get a similar result. Dividends are paid from cashflow, rather than after tax earnings. The reason is that the actual earnings are decreased so much by depreciation that if these companies only paid from earnings, they would be left with cash mountains doing nothing.

The answer is to pay out this cash to shareholders, and when plant is due to be replaced some years in the future, have a capital raise to pay for it.

[mondograss]

Given any repower would take years to bring to fruition, it seems prudent that they start the planning and design process for it now. It does occur to me that there are players like TLT and Longroad around the place, plus of course the big gentailers, who might find them more attractive to take over if they've done the planning work up front.