Rivco Australia (RIV) H1 2025 earnings summary

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.