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


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:

Mighty River Power’s Statement of Corporate Intent 2013 - 2015 is available on the Company’s website at:


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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade & Retail: Chinese Disaster Spells Quiet Season For NZ Fireworks Sales

In August, two massive explosions at a warehouse at the port in the port of Tianjin, Northern China, killing more than a hundred people and devastating large areas of the city. In the wake of the disaster, Chinese authorities rushed to regulate the distribution of all dangerous goods... More>>



Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news