Profit and Dividend Announcement 2019-2020
"In what has been another challenging year for the Queensland sugar industry, the full year results reflect STL's ongoing commitment to tight cost control, maintaining high service levels and delivering increasing returns to shareholders" announced STL Chairman Mark Gray.
"STL has continued its focus on finding operational efficiencies to reduce costs, whilst taking proactive measures to diversify income and maximize the value generated by STL's assets" he said.
- Maintained customer service levels and kept the team safe during the COVID-19 pandemic
- Reduced activity charges to customers, offsetting significant increases in insurance costs
- Increased dividends paid to shareholders by 2.9% to 7.1 cents per share (fully franked)
- Extended raw sugar storage and handling agreements with all customers until 30 June 2022
- Established detailed service requirements and critical performance indicators for all terminal operations as part of a commitment to commercial and operational best practice
- STL's $100 million roof replacement program is now 87% complete, with Bundaberg Shed 1 completed during FY20 and Mackay Shed 1 well advanced and due for completion in H1, FY21
- Appointed Mr David Quinn as STL's new CEO, to lead STL on the next stage of its growth
Mr Gray said that, in the face of the ongoing economic challenges facing the Queensland sugar industry, STL is sharply focused on delivering enhanced value by balancing increased returns to shareholders with reduced costs to customers, while maintaining a strategic focus on the future.
"STL's strategic focus is to achieve strict cost control through commercial and operational best practice and continue to explore opportunities to diversify income - while maintaining raw sugar as our highest priority" he said.
"STL and its operations contractor have agreed a robust performance framework for terminal operations which will deliver significant benefit to the business, both in terms of existing operations and capacity to expand into other commodities" he said.
STL's Annual Report for FY20 is available at www.sugarterminals.com.au.
At its Board meeting today, Directors resolved that a dividend of 3.6 cents per share ($12.960 million), fully franked on tax paid at 30%, will be paid on 30 September 2020 to shareholders whose names are recorded on the register on 11 September 2020. This is an increase in dividend of 2.9% compared with the previous corresponding period and continues STL's approach of a steady increase in dividends in line with profitability.
To view the Annual Report 2020, please visit:
About Sugar Terminals Limited
Sugar Terminals Limited (NSX:SUG) (STL) owns and operates six bulk commodity terminals in Queensland and plays a vital role in Australia's sugar market, handling over 90% of the raw sugar produced in Australia each year. STL's terminals provide 2.5 million tonnes of storage capacity and handle more than 4.6 million tonnes of commodities each year. In addition to around 4 million tonnes of bulk sugar, STL also handles more than half a million tonnes of other commodities annually, including molasses, wood pellets, gypsum and silica sands. STL has over $350 million in assets in strategic port locations across Queensland. We have in place 100 year leases with the port authorities at each of our six terminals. These leases include rolling options to extend for a further 100 year period.
Sugar Terminals Limited