Growth stagnates, yield okBroker research below:Maintain...

Growth stagnates, yield ok

Broker research below:

Maintain Underweight and $37.00ps price target
Our earnings forecast changes relate largely to the significant petroleum resource rent tax (PRRT) benefit (USD200m-250m). We
retain our Underweight recommendation and 12-month price target of $37.00ps. In our view, WPL has limited near-term growth
options: Browse commercialisation has been delayed, the Pluto expansion needs exploration success and issues at Sunrise
appear unlikely to be resolved near term. WPL will now add back impairments (estimated to be USD380m-400m in FY13) to
underlying earnings for the calculation of the final dividend. This adjustment also affects the interim dividend on a retrospective
basis, thereby adding US7c to the final dividend. The increased returns to shareholders are positive, but again highlight the lack
of growth. We see risks regarding increased M&A and exploration activity.