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DFDS to distribute excess capital to shareholders
20 November, 2013
DFDS adopted a new policy on capital structure and distribution to shareholders due to the financial strength achieved in recent years
Backed by financial strength and confidence in the future, DFDS adopts new policy on capital structure and distribution to shareholders
In view of the financial strength that has been achieved in recent years and expectations of continued profit growth, the Board of Directors has assessed DFDS’ capital structure and distribution policy.
The Board of Directors has adopted a capital structure target of a net interest-bearing debt of minimum 2.0 times and maximum 3.0 times the operating profit before depreciations (EBITDA). If the debt is lower than 2 times EBITDA, the excess capital will be distributed to shareholders. If the ratio exceeds 3, the distribution is reduced.
The above targets can temporarily be suspended in case of large investments, including acquisitions, and other strategic events.
At the end of Q3 2013, the debt was 2.0 times EBITDA for the last 12 months, and at the end of 2013, the ratio is expected to be at the same level.
Distribution policy: Payment of an annual dividend of DKK 14 per nominal share of DKK 100. Distribution of excess capital according to the targeted capital structure, re above, is done by payment of an extra dividend and/or share buybacks based on an assessment of relevant current circumstances, including the share price.
The dividend of DKK 14 per share corresponds to the dividend for the accounting year 2012, which amounted to DKK 208m (including treasury shares). In addition, DFDS distributed DKK 628m through the purchase of own shares in connection with A.P. Moeller – Maersk’s sale of its shareholding in September 2013.
”Our new capital structure targets and distribution policy reflects the financial strength, that DFDS has achieved. It is also a signal of our confidence in the future to our shareholders,” says Bent Østergaard, chairman of DFDS’ board of directors.
Niels Smedegaard, CEO
+45 3342 3400
Torben Carlsen, CFO
+45 3342 3201
Søren Brøndholt Nielsen, IR
+45 3342 3359