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- Release Date: 23/11/12 16:55
- Summary: DIVIDEND: MRP: Mighty River Power Increases Dividend Pay-out Ratio
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MRP
23/11/2012 14:55
DIVIDEND
REL: 1455 HRS Mighty River Power Limited
DIVIDEND: MRP: 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.as
px
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/Stateme
nt-of-Corporate-Intent.aspx
End CA:00230177 For:MRP Type:DIVIDEND Time:2012-11-23 14:55:22
