Shares in Sydney-based investment group Washington H Soul Pattinson hit a new all-time high yesterday after the now usual one cent a share boost to its interim dividend after reporting mixed results from its stable of companies in the latest half year.
Shares in Soul Patts hit a new all-time high $32.33 in trading yesterday before closing at a new all-time closing high of $32.29.
That was after the company reported a 35.3% increase in statutory profit to $68.9 million for the six months to January 31, largely due to lower impairment charges on investments and mine development assets compared to the same time last year. That was up from 51% a year ago.
The company said what it called “regular profit” fell 27.7% from the previous corresponding period to $90.2 million. In its release, the company noted that “regular profit after tax is a non-statutory profit measure and represents profit from continuing operations before non-regular items”.
Soul Pattinson pointed to a drop in revenue from New Hope Corporation (it reported on Tuesday) for part of that decline due to lower coal prices and production in the first quarter. New Hope’s contribution to regular profit fell $43 million year-on-year.
This was partially offset by a $50 million increase in profit contribution from mining subsidiary Round Oak, which reported increased production levels at all operations and strengthening commodity prices.
The company also enjoyed higher investment and trading income, and an improved contribution from Brickworks (see separate above).
The company also said that TPG did not contribute to regular profit following its merger with Vodafone due to its “derecognition as an equity accounted associate” of Soul Patts.
Soul Patts will pay an interim dividend of 26 cents per share, up one cent from a year ago and fully franked.
