Of course WPL won’t pay out current dividend. It’ll most likely defer investment decisions too. This is an oil will rebound buy coupled with lower AUD. WPL makes free cash flow at the current POO and it’s balance sheet is sound due to that raising at $27. If it cans Scarborough forever I’d argue do a share buyback with that cash sitting there.
1) soaks up vast franking credits
2) buys shares probably sub $14 or so using franking with shares issued circa $27
No brainier if they become too scared of current environment say 12 months time.
Then reap rewards of a higher EPS in a low POO environment from buyback and potentially even gobble up starving/bankrupt plays such as STO.
Why buy WPL?, page-180
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Last
$24.56 |
Change
0.460(1.91%) |
Mkt cap ! $46.63B | |||
| Open | High | Low | Value | Volume |
| $24.40 | $24.76 | $24.36 | $117.8M | 4.789M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 38676 | $24.56 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $24.62 | 724 | 1 |
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| Last trade - 16.10pm 19/11/2024 (20 minute delay) ? |
| WDS (ASX) Chart |