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Duxton Water (D2O) investor relations material
Duxton Water H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Achieved record half-year net profit before tax of $35.3 million, up 199% year-over-year, driven by strong capital gains, portfolio rebalancing, and improved market conditions.
Reduced gearing from 31% to 5% by repaying $98 million in debt, enhancing balance sheet flexibility.
Sold $135.2 million in water entitlements to the government at a premium, generating substantial gains.
Internalisation of management approved and implemented, eliminating ongoing management and performance fees.
Maintained a fully franked dividend of 3.71 cents per share, continuing a consistent dividend track record.
Financial highlights
Net profit after tax rose 195% to $24.5 million; earnings per share reached 15.8 cents, up 198% year-over-year.
Total portfolio return was 11% post-tax (15% pre-tax) for the six months to 30 June 2025.
Post-tax NAV per share increased to $1.65; statutory NAV per share at $1.37.
Water portfolio valued at $291 million, with 59.0 GL of permanent water entitlements.
Dividend of 3.71 cents per share paid, with an interim 2025 dividend of 3.72 cents per share declared.
Outlook and guidance
Strengthened balance sheet and improved market conditions position the company for continued value creation.
Drier conditions and lower dam storage levels are expected to support higher lease yields and allocation prices.
Near-term allocation determinations remain low, with future water availability dependent on inflows.
Internalisation of management expected to complete within the Transitional Services Agreement period.
Strategic framework under review to enhance long-term value creation and capital management.
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