D2O - Duxton Water

[Dona Ferentes]

D2O will pay its 16thconsecutive and increasing dividend to shareholders of 3.71 cents per share. The dividend will be fully franked (30% tax rate)

$1.33.

 

[divs4ever]

D2O Executes $121.3 Million Sale of Water Entitlements
Highlights:
• Duxton Water has agreed to sell 30,614 megalitres of Australian water
entitlements to the Australian Government to support environmental water flows.
• Sale includes both high security and general security water entitlements across
several regions and river systems.
• Sale proceeds of approximately $121.3 million are expected to be received upon
settlement.
• This transaction presents a significant opportunity to both enhance
environmental water flows and deliver value for shareholders, with execution at a
premium to current net asset value (NAV).
Duxton Water Limited (“the Company” or “D2O”) is pleased to announce that it has entered into a sale
agreement with the Australian Federal Government to sell 30,614.7 megalitres of water entitlements at a premium to its current NAV, supporting environmental river flows.
The transaction is valued at approximately $121.3 million.
This sale is part of the ‘EOI 2 - Large Portfolios of Water’ tender, an initiative under the Restoring Our
Rivers Act, aimed at recovering 450GL of water to enhance environmental outcomes across the Murray-Darling Basin and support local communities.
This strategic sale aligns with the Company’s commitment to sustainable water management and to
supporting the Federal Government’s efforts to deliver a healthy, sustainable river for future generations.
This disposal provides D2O with the flexibility to rebalance its portfolio and unlock value for its
shareholders.
The Board believes this transaction is likely to have a positive impact on the Company’s future profitibility.

The EOI 2 – Large Portolio tender includes the sale of:
• 3,010 megalitres of High Security permanent water entitlements in NSW,
• 13,114 megalitres of High Reliability permanent water entitlements in Victoria, and
• 14,491 megalitres of General Security permanent water entitlements in NSW.
Proceeds from the sale of these water entitlements will be used to settle permanent water entitlement
acquisitions totaling $19 million, which are contracted but not yet settled, as well as to reduce the
Company’s debt facility.
Settlement of this transaction is subject to receipt of the required water authority approvals for the
transfers. It is expected that settlement will occur 10 business days after receipt of such approvals.
After completing this transaction and settling the recently contracted acquisitions mentioned above, the Company’s entitlement portfolio is expected to total 60.9 gigalitres.
The Company estimates the value of its portfolio upon settlement of these transactions will be approximately $294.4 million, based on 31
January 2025 valuations.
This announcement has been authorised for release by the Board of Duxton Water Limited.

i hold D2O