Ann: DIVIDEND: CEN: Contact completes review and announces special dividend

• Release Date: 25/05/15 08:34
• Summary: DIVIDEND: CEN: Contact completes review and announces special dividend
• Price Sensitive: No
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					CEN
25/05/2015 08:34
DIVIDEND
PRICE SENSITIVE
REL: 0834 HRS Contact Energy Limited

DIVIDEND: CEN: Contact completes review and announces special dividend

MEDIA RELEASE

For immediate release

Monday 25 May 2015

Contact concludes review and announces revised distribution policy including
a special dividend of $367m to be paid in June 2015

As announced in February 2015, Contact Energy Limited (Contact) has been
examining growth opportunities in renewable energy, the company's capital
structure and the capacity to increase distributions to shareholders.

Contact has concluded that there are no material investment opportunities
available at this time that would sufficiently reward shareholders and that
the company can support increased distributions to shareholders.

The Contact Board of Directors has revised the company's distribution policy
to reflect the expectation that Contact will have limited capital
requirements in the near term. Contact's amended dividend policy will be to
target an average ordinary dividend equivalent to approximately 100 per cent
of Underlying Earnings after Tax .

To the extent free cash flow exceeds the distributions outlined above, and
absent new domestic growth opportunities or adverse market events, additional
distributions will be made and are likely to take the form of share buybacks.

As the company has accumulated a significant balance of imputation credits
from capital raisings over recent years the company has determined to return
$367 million (50.0 cents per share) to shareholders through a fully imputed
special dividend to be paid on 23 June 2015.

Contact remains committed to maintaining an efficient capital structure and
to an investment grade credit rating. Standard and Poor's has recently
re-confirmed Contact's BBB credit rating.

"As a result of the capital investments made with the support of our
shareholders, Contact is a strongly cash generative business which can
support the change in distribution policy announced today. We value the
flexibility provided by an investment grade credit rating which enables the
company to withstand variable market conditions.

Contact believes that we have a strong capability in renewable energy, in
particular geothermal, and we will continue to explore how we may leverage
these skills to grow earnings over the long term.

Contact is focused on creating long-term value for our shareholders and will
do this through the safe operation of our business, a focus on costs and
efficiency and providing customers with the quality of service and products
they expect", said Mr Barnes.

ENDS

Notes:
o The fully imputed special dividend of 50.0 cents per share will be paid on
23 June 2015 to all Contact Energy shareholders who are on the Company's
share register at 5pm on the record date of 10 June 2015.
o The dividend will be fully imputed which amounts to an imputation credit of
19.4444 cents per share.
o The Company will also pay a supplementary dividend of 8.8235 cents per
share to non-resident shareholders. The Company will receive from the IRD a
tax credit equivalent to the supplementary dividend.

Media enquiries: Nicholas Robinson 027 705 3831

Investor enquiries: Fraser Gardiner 021 228 3688
End CA:00264737 For:CEN    Type:DIVIDEND   Time:2015-05-25 08:34:14