They're projecting $50 million in staff cuts and $30 million in OPEX savings over the next year. To me that gets their FCF to around $400M. If NZ interest rate cuts flow through to interest costs and price increases also come through I think they're predicting $440M in FCF at the high end. Could be other factors that need to work in their favour to get that.
Current dividend requires around $500M FCF by my calculations if no DRP uptake. So could be a >=10% dividend cut coming or they take on more debt to fund it.
If they get around 10% to 20% DRP uptake then maybe it's still affordable. That's effectively a dividend cut, though, for non-DRP folks as they get diluted.
SPK Price at posting:
$2.83 Sentiment: Buy Disclosure: Held
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