Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Mighty River Power Increases Dividend Pay-Out Ratio

NEWS RELEASE

23 November 2012

Mighty River Power Increases Dividend Pay-Out Ratio

Mighty River Power’s Board today announced a change to the Company’s dividend policy; increasing the dividend pay-out ratio from 75% to between 90–110% of net profit after tax, after adjusting for the impact of NZ IFRS fair value movements of financial instruments net of tax each year and any accounting impairments.

The change to the policy was noted in Mighty River Power’s Statement of Corporate Intent, which is agreed with the shareholder annually and sets out the Board’s overall intentions and business objectives for the period 1 July 2013 to 30 June 2015.

Chair of Mighty River Power, Joan Withers, said the policy had been at 75% since 2010 due to the need to retain sufficient earnings to support the Company’s more than $1 billion domestic geothermal capital expenditure programme over the last five years. Mighty River Power is now adjusting to the current outlook for New Zealand electricity supply and demand with less operating cash flow now allocated to new domestic projects and higher dividend flows to owners.

“The Board has gained confidence to increase the dividend pay-out ratio due to the successful execution of our geothermal strategy. In October we saw the first cash returns from our international investment through the GeoGlobal Energy (GGE) Fund and our Ngatamariki Power Station, near Taupo, is due for completion in mid-2013,” said Mrs Withers.

The dividends declared by the Company will be subject to working capital requirements, the medium term asset investment programme and a sustainable financial structure for the Group, having regard to the Company’s long term credit rating. Mighty River Power has a BBB+ rating assigned by Standard and Poor’s, which was re-affirmed in October 2012.

Mighty River Power’s full dividend policy is available on the Company’s website at: http://www.mightyriver.co.nz/Results/Financial-Information/Dividend-Policy.aspx

Mighty River Power’s Statement of Corporate Intent 2013 - 2015 is available on the Company’s website at: http://www.mightyriver.co.nz/About-Us/Governance/Governance-Documents/Statement-of-Corporate-Intent.aspx

--

About Mighty River Power
Mighty River Power is one of New Zealand’s largest electricity companies – with its core business based on reliable, low fuel-cost electricity generation complemented by sales to businesses and homes, which account for about 18% of New Zealand’s total electricity consumption.

The Company operates nine hydro power stations, four geothermal plants and a multi-unit gas-fired station. More than 90% of its electricity production is from renewable sources. Mighty River Power sells electricity through multiple channels and retail brands, including Mercury Energy, GLO-BUG, Bosco Connect and Tiny Mighty Power. Mighty River Power also has investments in international geothermal projects.

ENDS


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news