Ryanair €500 million cash distribution

Comordha

Does anybody know when the ex-dividend date for this will be?

alexlyons

nope, but would love to know what the dividend per share is

finisklin

See Davy's report below......looks like .34 cent per share and needs to be approved at AGM on September 22nd.

Net income of €319m beat guidance of 'not less than €310m' provided at the start of April and our forecast of €313.9m, which is broadly at consensus. The beat was driven by higher Q4 yields — by our calculations up 3%. Ancillary revenues grew by 23%. Ex-fuel cost performance for the year was again excellent — down 3%. The balance sheet remains very strong with net debt of only €143m. Ryanair will distribute cash of €500m or 34c per share, subject to AGM approval on September 22nd. It also reiterated its commitment to distribute another €500m in cash by FY2013.

Having previously indicated a cost related to the volcanic ash disruption of c.€6m a day, Ryanair has now indicated a cost of €50m for customer compensation and fixed costs incurred at the time of the airspace closure. This is likely to be treated as an exceptional item. We consider this one-off and inconsequential relative to the company's €2.8bn gross cash position. Despite the extensive disruption, Ryanair's exposure is limited by its very low fixed cost base. Guidance is for yields up 5-10% and profits up 10-15%for FY2011. Ryanair has guided profit of €350-375m, pre-exceptional, for FY2011, with Q1 slightly down year-on-year.

The key feature is higher fuel costs as expected, but Ryanair is also reporting relatively strong revenues. Fuel hedging has been extended: the airline is hedged out for FY2011 at $730 per tonne but also 50% for Q1 and 20% for Q2 FY2012 at $750 per tonne. The US dollar on opex is hedged out in FY2011 at c.1.40 and on capex at c.1.46. Ex-fuel costs are assumed to go up 4%, with sector length up 10%, meaning sector length adjusted down 6%. Crucially, Ryanair is indicating a strong performance on summer bookings and yields. This is encouraging given that Ryanair is usually cautious at this time of year.

We will review our FY2011 and FY2012 forecasts of net income of €352.4m and €489.7m respectively (consensus €363m and €515m respectively), but we are unlikely to materially change them (fuel dominated cost increases offset by stronger unit revenue). We believe that Ryanair's revenue and cash generative potential and its industryleading cost base continue to merit our 'outperform' rating. We also retain our 500c price target.

NEDDURC

Just a follow on to this - If I bought shares today and this dividend is approved in Sept does that mean that I would be eligible for this dividend or is there a cut off at a certain date?

heno55

thats a 10% div, fairly good in todays climate

Comordha

I think that is what we all want to know.

RizzoJR

heno55 wrote: »

thats a 10% div, fairly good in todays climate

but the price will drop (adjust) when it goes ex-dividend

there aint no free lunch

homer911

You can register for investor-relations email updates here:
http://www.ryanair.com/ie/investor/investor-relations-updates

displaced dub

i bought some more over the last few weeks and added another 500 today, will be a nice divi in october.

ted1

surly the price has increased to allow for the dividend

Comordha

I am still looking for an answer, does anybody know when the ex-dividend date is?

pocketdooz

Comordha wrote: »

I am still looking for an answer, does anybody know when the ex-dividend date is?

€500mm has not been agreed yet. Putting it before the Board at the September AGM.

Dividend will then be paid in October.

So, you won't know the ex-divi date yet most likely.

.

Idbatterim

Do airlines put their fuel requirements out to tender? Could they buy or drill their own wells and cut out middleman?

displaced dub

Idbatterim wrote: »

Do airlines put their fuel requirements out to tender? Could they buy or drill their own wells and cut out middleman?

Wouldn't that be a great idea, lets think about BP and ryanair, so off ryanair go and drill a well in the gulf of mexico and bang it leaks and bankrupts the airline.

Have you thought about that bit??

Idbatterim

I was just posing the question. Fuel is a huge cost to the airlines. It would be in all of their interest to source cheaper fuel. All of the airlines could conceivably be involved in such a venture. I take it the larger oil companies make massive margins?

Idu

They should be using futures to hedge their exposure

RoadKillTs

They have it hedged until 2012.

Fuel costs declined 29% to €894m as oil prices fell from $104 to $62 pbl. We extended our
hedging program to 90% for FY11 (at $730 per tonne), 50% of Q1 FY12 (at $750 per tonne) and
20% of Q2 FY12 (at $750 per tonne).

I take it this is done through futures?

Comordha

No, reverse trades actually

pocketdooz

Idbatterim wrote: »

I was just posing the question. Fuel is a huge cost to the airlines. It would be in all of their interest to source cheaper fuel. All of the airlines could conceivably be involved in such a venture. I take it the larger oil companies make massive margins?

The massive oil exploration companies have the cheapest sourcing opportunities due to economies of scale so it wouldnt work for Ryanair, Easyjet etc to go off drilling for deep-sea oil.

However, I think the oil companies should start airlines so they can put all that oil to good use.

"B.P. AIRWAYS" - I'd use them anyway .....

.

RoadKillTs

Taken from here

Ex - Dividend Date - Wednesday 15th September 2010

Comordha

Yeah thanks I saw that today. Might wait for a bit of a dip and then invest.

displaced dub

Got my Divi 370.00 for 1380shares... Stock up 23.15% since purchase.

What are the rest of ye doing with your shares now??

RoadKillTs

Got my Divi 370.00 for 1380shares... Stock up 23.15% since purchase.

What are the rest of ye doing with your shares now??

We must have bought at the same time

Hanging on another while. Not sure how much growth is left here though and not too happy about MOL leaving.

What about you?

Link to recent interview MOL gave.

displaced dub

Im going to stay in, i have only used ryanair twice in the last 6 years because of how far away from major cities that the airports they land in are.

If, more like when, they start flying into major airports they will attract the business traveller who books last minute and is willing to pay more for their ticket.

For instance i met Mr O in Schipol recently looking up at the screens to see where the AL flight was departing from i asked him when he would be flying there from Dublin.... His answer was when they could turn the planes around quicker and when the landing charges have reduced.

Schipol now has a low cost terminal thats full of EJ planes so i would say the move to more profitable routes will be sooner rather than later.

AL flight to amsterdam are always very full and they can charge what they like as they have it to themselves, if they were not making money on the route they wouldn't be flying there 5 times a day.

RoadKillTs

Did you see the story on Davy this morning?

Link

Link2

Interesting although not sure what they (OFT) can do.
Can they make them sell part of their stake?

Comordha

Hot air. Would be a great result for Aer Lingus though who would love to break free from Ryanair. Makes no difference to Ryanair as they wrote off the investment.