26 Nov 2012

Mighty River board agrees dividend policy change

11:23 am on 26 November 2012

The board of Mighty River Power board has agreed to a change to the firm's dividend policy.

It says the dividend pay out ratio is increasing from 75% to 90 - 110% of net profit after tax.

Mighty River Power chair Joan Withers says the ratio has been at 75% since 2010 because the company needed to keep enough revenue to develop its geothermal activities.

She says it is now increasing the ratio after successfully implementing the geothermal strategy.

Dividends declared by the company will still be subject to working capital requirements.