Not Quite. Here is my assessment of cashflows from 2019 1H report and prospectus (in $USD) operating at ~ 74% capacity
11.2m EBITDA attributable to NEW Less 10.4m interest expense 2.6m Fees to manager and responsible entity
So they are short 1.8m to cover the dividend of ~9.6m USD. If capacity is scaled up there is some dividend cover (depending on what interest rate is used) Next bear in mind that for the next few years NEW has > 18.5m debt coming due each year. When debt is refinanced they also pay refinancing fees to the responsible entity as debt arranger. It seems clear why NEW is selling some assets. They need cash to repay debt and pay dividends. Also the distributions (5.3m) to tax equity investors are going to last for about 5 years. A small part of that is ongoing minority interests.
My point. BEWARE, keep your eyes wide open. Management isn't being open in addition to the transparency related to the start up phase, .i.e. debt maturity profile isn't shown nor is detail about length of tax equity component.
NEW Price at posting:
$1.35 Sentiment: None Disclosure: Not Held
