Dalrymple Bay (ASX:DBI) sticks to dividend guidance, shares on watch

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Highlights

  • Dalrymple Bay has announced dividend of 18.27 cents per stapled security in FY22.
  • Dividend policy of DBI is to maintain 1-2% per annum growth.
  • DBI distributes dividend every quarter.

Port infrastructure and services provider, Dalrymple Bay Infrastructure Limited (ASX:DBI) shared on Wednesday that it is committed to its distribution guidance for the financial year 2022 (FY22) through ASX-announcement on Wednesday.

As per the previous distribution guidance, the company said it would distribute 18.27 cents of dividend per stapled security in 2022. The dividend amount represents a yield of 8.7%.

The distribution policy of DBI is to pay out 60 – 80% of funds from operations and 1 – 2% per annum growth in the dividend per security. The distribution guidance for FY22 is in line with the company’s policy. 18.27 cents per staple security of distribution represents an annual growth of 1.5%.

One of the largest metallurgical coal export facilities, DBI announces dividends every quarter. In line with its FY22 distribution guidance, the company has declared a dividend of 4.567 cents per stapled security during the first quarter of FY22 (1QFY22). The distribution has an ex-date of 30 May 2022, and the record date is 31 May 2022. The dividend is expected to be distributed on 16 June 2022. The dividend is 100% unfranked.

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As per the ASX-announcement:

How did DBI perform in FY21?

In the year 2021, DBI recorded revenue of AU$202.9 million from terminal infrastructure charges with funds from operations of AU$112.5 million. The terminal of DBI exported more than 54mt of coal. Noteworthy here is that 81% of the coal exported was metallurgical coal. It is used in steelmaking.

In 2021, strong safety performance was delivered, and the company is committed to continuously improving its safety culture.

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As per the DBI, it achieved a milestone in 2021, which is getting approval from QCA (Queensland Competition Authority) for transition to a light-handed regulatory framework. This framework would allow the company to negotiate with its customer directly. The new framework came into effect on 1 July 2021 and is applicable for five years.

Yet DBI has not ascertained its new pricing arrangement, and operations are continued under previous pricing arrangements only. The existing pricing arrangement enabled the company to announce a dividend of 18.27 cents in 2022.

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What to expect from DBI in 2022?

Through ASX-announcement, DBI informed the market it would focus on maintaining its investment-grade balance sheet. It would engage with its customers to ascertain new pricing arrangements under the new regulatory framework. The company would also direct its efforts to complete the feasibility studies for 8x expansion.

At 11:10 AM AEST, the shares of DBI were spotted trading at flat AU$2.09 per share.


 


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