Unfranked Dividend and Currency Risks Loom for Genesis Energy Shareholders

Dividend Update and Currency Confirmation

Genesis Energy Limited (ASX, GNE) has provided an update to its previously announced interim dividend for the six months ending 30 June 2025. The company confirmed the New Zealand Dollar to Australian Dollar exchange rate applied to the dividend payment, finalizing the AUD equivalent at approximately 7.44 cents per share. This update ensures clarity for investors receiving dividends in Australian currency, reflecting the cross-border nature of Genesis Energy’s shareholder base.

The total ordinary dividend declared is NZD 0.08435294 per share, payable on 10 October 2025. The record date for entitlement was 25 September 2025, with the ex-dividend date set a day earlier. Importantly, the dividend is fully unfranked, meaning it does not carry Australian franking credits, which is typical for New Zealand-based entities listed on the ASX.

Supplementary Dividend and Tax Considerations

Alongside the ordinary dividend, Genesis Energy declared a supplementary dividend of NZD 0.01265294 per share, also unfranked. Supplementary dividends are often paid to compensate Australian investors for the withholding tax implications on foreign dividends, ensuring a more tax-efficient outcome for shareholders. The withholding tax rate applicable to the dividend is 15%, consistent with New Zealand tax regulations.

Dividend Reinvestment Plan Details

Genesis Energy continues to offer a Dividend Reinvestment Plan (DRP) for shareholders wishing to reinvest their dividends into additional shares rather than receiving cash. The DRP for this dividend includes a 2.5% discount on the reinvestment price, set at NZD 2.29290 per share, and new shares will be issued under the plan. This approach supports shareholder value by providing an attractive reinvestment option without dilution from market purchases.

The DRP election deadline was 26 September 2025, with the reinvestment price calculated over the period from 24 to 30 September 2025. Shares issued under the DRP will rank pari passu with existing shares from the issue date, which is aligned with the dividend payment date of 10 October 2025.

Implications for Investors

This update provides certainty on the dividend payment and currency conversion, which is critical for investors managing cross-border income streams. The fully unfranked status and supplementary dividend highlight the tax considerations for Australian shareholders. Meanwhile, the DRP’s discount and issuance of new shares offer a cost-effective way for investors to compound their holdings in Genesis Energy.

Overall, the announcement reflects Genesis Energy’s steady approach to shareholder returns amid a stable operating environment, with no new approvals required for the dividend payment. Investors will be watching closely for the company’s next steps and any guidance on future dividend policy as the fiscal year progresses.