Vår is pushing it’s tax rate down by investing a lot of money into new projects, but let’s conservatively assume that all CAPEX is needed to substation the business. Then we get to the following numbers:
~ 1.350 Billion $ CFFO after tax - ~ 650 Million $ CAPEX
= Free Cashflow of 700 Million $ per quarter * 4 = 2.8 Billion $ per year
This is at current prices a Free Cashflow yield of 42% !
What about share repurshases? Has the company said something abut that?. It would be interesting at these prices. Thanks for sharing
I haven’t seen something like this in my research process. The company seems to be focused on dividends.
Where does "Montenegro" come from?
Montenegro ?
As of 3Q 2023:
- TTM CFO is 3004m
- TTM CFI is -2810m
- TTM dividends paid are -1130m
They should cut back on the dividends for a while, especially if they have upcoming capex to increase production by 2025.
They don't have WFT in Norway, but tax rate is crazy high, lowered by capex deductions the next few years after completing a new development: https://twitter.com/_NameValue_/status/1674447158995566592?s=20
80% (!) 😭. But the good thing is, that it can’t get much worse from here.
Vår is pushing it’s tax rate down by investing a lot of money into new projects, but let’s conservatively assume that all CAPEX is needed to substation the business. Then we get to the following numbers:
~ 1.350 Billion $ CFFO after tax - ~ 650 Million $ CAPEX
= Free Cashflow of 700 Million $ per quarter * 4 = 2.8 Billion $ per year
This is at current prices a Free Cashflow yield of 42% !