APA Group Revises Dividend Details Amid Currency and DRP Price Updates

Dividend Update Context

APA Group has issued an update to its previously announced dividend distribution, reflecting adjustments to the New Zealand dollar exchange rate and the Dividend Reinvestment Plan (DRP) share price. This update, released on 28 January 2025, revises key figures from the initial announcement made in December 2024, providing investors with a clearer picture ahead of the upcoming payment date.

Dividend Details and Payment Schedule

The company has estimated an ordinary dividend of AUD 0.270 per fully paid unit for the six-month period ending 31 December 2024. The dividend is scheduled to be paid on 17 March 2025, with the record date set at 31 December 2024 and the ex-date at 30 December 2024. Notably, no security holder or regulatory approvals are required prior to the payment, streamlining the process for distribution.

Currency Arrangements and Exchange Rate Impact

APA Group has confirmed that securityholders with a registered address in New Zealand may elect to receive their dividend payments in either New Zealand dollars or Australian dollars by providing appropriate bank account details before the record date. The updated exchange rate used for NZD payments is 1.1045 AUD/NZD, which directly influences the NZD equivalent dividend amount of NZD 0.298215 per security. This flexibility in currency choice reflects APA’s sensitivity to its investor base across the Tasman and the importance of currency considerations in dividend payments.

Dividend Reinvestment Plan (DRP) Adjustments

The update also revises the DRP share price to AUD 6.7605, incorporating a 1.5% discount. The DRP price is calculated based on a 10-day volume weighted average price starting seven trading days after the record date, spanning from 13 January to 24 January 2025. Securityholders who do not elect to participate in the DRP will receive cash payments by default. The DRP shares will be newly issued and rank pari passu with existing securities from the issue date, ensuring equal rights for reinvested shareholders.

Implications for Investors

This update provides investors with refined figures that may influence portfolio income expectations and currency exposure. The estimated dividend yield and DRP terms remain attractive within the utilities sector, particularly for those seeking stable income streams. However, the final dividend amount will be confirmed on 24 February 2025, introducing a degree of uncertainty that investors should monitor closely. The currency election options also underscore the importance of understanding cross-border payment logistics for New Zealand-based investors.