Rivco Australia (RIV) H2 2024 earnings summary

Executive summary

• Achieved profit before tax of $13.3 million for 2024, up from $9.0 million in 2023, driven by leasing revenue and a significant gain on water entitlement sales.

• Paid two fully franked dividends totaling 7.3 cents per share, maintaining a consistent dividend stream despite subdued operational performance due to wet conditions.

• Non-statutory post-tax NAV per share was $1.54 at year-end, down from $1.62, primarily due to dividend payments.

• Expanded water portfolio to 91.5 GL across 19 entitlement types, with 37% leased and a WALE of 2.8 years.

• Sold 2,799 ML of water entitlements for $25.2 million, realizing a $14.95 million accounting profit.

Financial highlights

• Total revenue increased to $10.0 million from $9.6 million year-over-year.

• Leasing revenue was $7.0 million, with allocation and forward sales supplementing income.

• Net profit after tax was $9.33 million, up from $6.33 million in 2023.

• Basic and diluted EPS were $0.060, compared to $0.048 last year.

• Return on capital employed rose to 6.4% from 5.0% year-over-year.

• Water portfolio fair market value was $392 million, up from $390 million.

Outlook and guidance

• Strategic priorities for 2025 include expanding the lease portfolio, targeting acquisitions in high-demand regions, and maintaining a sustainable dividend stream.

• Government water buybacks and climatic variability expected to influence market dynamics.

• Board remains committed to reliable dividends, with a final 2024 dividend of 3.71 cents per share declared for payment in April 2025.