Our approach to capital management and distribution policy is “better with you than with us.”
This is the opposite of building a ‘war chest’ and keeping cash for what the future might hold. We’re giving it back to shareholders as quickly as possible while also reducing debt.
At our Investor Day September 2017 the Board of Z Energy announced a new dividend policy. Subject to Z's performance and other relevant factors including the Directors' discretion, their assessment of investment opportunities available to Z, and Z's outlook, the Directors expect to pay a dividend of 80 – 100 percent of underlying free cash flow, defined as free cash flow after debt principle repayments, and to impute dividends to the extent possible.
Dividends to Shareholders, to the extent they will be paid, are expected to be payable in arrears for the six-month periods ended 30 September (interim dividend) and 31 March (final dividend). Interim dividends are expected to be paid in November/December and are expected to represent approximately 35% of the total full year forecast dividend. Final dividends are expected to be paid in May/June following the completion of the relevant financial year.
No guarantee can be given about future dividends, the level of imputation of such dividends (if any) or the extent of pay-out ratios for any future period as these matters will depend upon future events, including the profitability, growth opportunities, and financial and taxation position of Z and its subsidiaries. The payment of dividends by Z will be at the complete discretion of the Board.
Since listing in August 2013, Z has paid cash dividends of $448 million and grown the dividend per share from 22 cents in FY14 to 32.3 cents in FY18, an annual growth rate of 10 percent.
Declared dividends - cents per share
|Dividend||Payment date||Record date||Amount|
|FY 14 Interim Dividend||04 Dec 2013||22 Nov 2013||7.7 cents per share|
|FY 14 Final Dividend||04 Jun 2014||23 May 2014||14.3 cents per share|
|FY 15 Interim Dividend||03 Dec 2014||21 Nov 2014||7.7 cents per share|
|FY 15 Final Dividend||03 Jun 2015||22 May 2015||16.5 cents per share|
|FY 16 Interim Dividend||02 Dec 2015||20 Nov 2015||8.5 cents per share|
|FY 16 Final Dividend||08 Jun 2016||27 May 2016||18.1 cents per share|
|FY 17 Interim Dividend||12 Dec 2016||25 Nov 2016||9.4 cents per share|
|FY 17 Final Dividend||07 Jun 2017||26 May 2017||19.9 cents per share|
|FY 18 Interim Dividend||12 Dec 2017||01 Dec 2017||10.4 cents per share|
|FY 18 Final Dividend||30 May 2018||18 May 2018||21.9 cents per share|
|FY 19 Interim Dividend||11 Dec 2018||23 Nov 2018||12.5 cents per share|