The Strategy Committee of Fluxys SA has decided to propose to the Board of Directors on Wednesday to pay out available reserves of €421.6 million, the company said in a statement.
The pay-out will be financed, for the larger part, by available cash.
The envisaged pay-out allows Fluxys SA to bring its financial structure more in line with the Belgian regulatory framework (gearing of 1/3 equity and 2/3 debt) and make it similar to that of other European companies with a Standard & Poor’s ‘A’ rating, Fluxys said.
Upon pay-out of the available reserves the company will maintain the capacity required for its investment programme. The new financial structure will also improve return on equity and at the same time create room to keep tariffs competitive in the future.
The part of the available reserves to be paid out to parent company Fluxys G (90% stake in Fluxys SA) will be used to finance the development of the group and making new investments to attract additional gas flows to Belgium so as to reinforce security of supply and the crossroads function of the Belgian network, Fluxys added.
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LNG World News Staff, March 12, 2012