SOL +0.16%: delivered a steady 1H result with modest underlying profit growth and another lift in the dividend, reflecting the benefits of a more diversified earnings base following recent portfolio changes.
- Net income: $304m, +6.7% y/y
- Revenue (continuing operations): $818m, +66% y/y
- Interim dividend: $0.48 vs. $0.44 y/y
The result reflects what management described as a “landmark period” of portfolio transformation, with increased investment activity and stronger property contributions following the recent merger with Brickworks. Profit growth was supported by higher trading gains and property earnings.
The half saw a lower contribution from New Hope, of which SOL owns ~40%, though given the current dynamic playing out in energy as a result of the Middle East Conflict i.e rising coal prices, we’ll likely see a turnaround on this front moving through the 2nd half.
We recently added SOL to the Active Income Portfolio, and given volatility in the current environment, its diversified asset base and long track record of dividend growth still screen as attractive for investors focusing on income generation.
MM remains long and bullish SOL
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