Dividend for financial year 2011
Proposed allocation of profits
Fluxys NV/SA’s net result was €157.2 million, compared with €267.7 million in 2010.
The result for 2010 was boosted by both non-recurring items, such as the surplus yielded as a result of the restructuring of the group and the positive influence of the recovery of the non-depreciated portion of the facilities that were decommissioned as a result of the closure of the peak-shaving facility at Dudzele.
In 2011 a non-recurring dividend of €66.2 million was received from Fluxys LNG corresponding to the built-up available reserves.
Apart from one-off factors, the net profit for 2011 increased by € 22.6 million thanks to the investment programme and interest rate trends.
Since 2010 and barring any unforeseen events, Fluxys envisages to distribute 100% of its net profit for the year plus any reserves released as and when the revaluation surplus depreciates.
Now that the major uncertainties surrounding tariffs are lifted, the Board of Directors will propose to the Annual General Meeting to pay out available reserves for an amount of €421.6 million. The payout will be financed, for the larger part, by available cash.
Factoring in a profit of €53.1 million carried over from the previous period and a withdrawal from reserves of € 464.8 million, the Board of Directors will propose to the Annual General Meeting to allocate profits as follows:
- €47.8 million to profit to be carried forward;
- €623.9 million as a dividend payout;
- €3.4 million as reserves not available for distribution.
If the proposed allocation of profits is accepted and if the Extraordinary General Meeting decides to split the share, the total gross dividend per split share for 2011 will be €8.88 (€6.66 net). That amount will be payable as from 15 May 2012.
As a reminder, the 2011 dividend (excluding non-recurring items) was €1.43 net per split share.
Positive impact of distribution of the available reserves
The distribution of the available reserves will allow Fluxys to move towards a financial structure that is more in line with the Belgian regulatory framework (with a ratio of 1/3 equity to 2/3 borrowed funds ) and similar to the financial structure of European companies with a Standard & Poor’s ‘A’ rating. Following the distribution of the reserves, the company will maintain the resources needed for its investment programme. The new financial structure will also improve the return on equity and at the same time is to create room to keep tariffs competitive in the future.
The share of available reserves paid to parent company Fluxys G will be used for financing the development of the group and for investments to attract additional natural gas flows to Belgium, with a view to consolidate security of supply and the Belgian grid’s role as a natural gas crossroads.
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