Duxton Water Reports $24.5M Net Profit and $1.65 NAV Per Share

Strong Profit Growth

Duxton Water Limited has delivered an impressive financial performance for the half-year ended 30 June 2025, reporting a net profit after tax attributable to shareholders of $24.5 million. This represents a striking 197% increase compared to the same period last year, underscoring the company’s effective management and favourable market conditions within its water entitlement portfolio.

Rising Net Asset Value and Capital Gains

The company’s net asset value (NAV) per share also showed healthy growth, rising to $1.37 based on Australian Accounting Standards, and $1.65 when measured on a fair market value basis. This premium reflects significant unrealised capital gains of $61.7 million on the water portfolio, which are excluded from statutory accounts but highlight the underlying asset strength. The fair market value NAV increase from $1.54 at the end of 2024 signals robust asset appreciation.

Dividend and Shareholder Returns

In line with its strong earnings, Duxton Water paid a fully franked final dividend of 3.71 cents per share in April 2025, slightly up from the previous year’s 3.6 cents. The franked nature of the dividend enhances its attractiveness to investors by reducing tax liabilities. Additionally, the company maintained its dividend reinvestment plan (DRP), offering shareholders the option to acquire new shares at a 5% discount, a move that supports shareholder value and capital growth.

Operational and Financial Stability

The half-year report also notes that Duxton Water realised $34.3 million in capital gains from entitlement sales, contributing to the strong profit before tax of $35.3 million. The company’s balance sheet remains solid, with total net assets of $213.6 million on an accounting basis and $257 million on a fair market value basis. There were no changes in control or joint ventures during the period, indicating operational stability.

Looking Ahead

While the company’s results are encouraging, the exclusion of unrealised gains from statutory accounts means investors should watch closely how these gains translate into realised profits in future periods. The continuation of the DRP and steady dividend payments suggest management’s confidence in ongoing cash flow generation and asset performance.