Rivco Australia has reported a remarkable 135% increase in net profit for the year ended 31 December 2025, alongside fully franked dividends and a solid net asset value per share.
- Net profit rises 135% to $21.9 million
- Revenue grows 33% to $13.4 million
- Fully franked dividends totaling 7.43 cents per share
- Net asset value per share increases to $1.32 excluding unrealised gains
- Unrealised capital gains of $61 million on water portfolio excluded from statutory accounts
Strong Financial Performance
Rivco Australia has delivered an impressive financial performance for the year ended 31 December 2025, posting a net profit after tax of $21.9 million, a 135% increase compared to 2024. Revenue also rose by a solid 33% to $13.4 million, reflecting the company’s growing strength in the water entitlements sector.
Dividend Continuity and Shareholder Returns
The company maintained its commitment to shareholder returns by paying two fully franked dividends during 2025, totaling 7.43 cents per share. This included a final dividend of 3.71 cents and an interim dividend of 3.72 cents, both franked at 100%. The Board has also announced a fully franked final dividend of 3.72 cents per share for 2025, payable in April 2026, with the Dividend Reinvestment Plan continuing to operate.
Net Asset Value and Unrealised Gains
Rivco’s net asset value (NAV) per share, calculated under Australian Accounting Standards, rose to $1.32 at year-end, up from $1.25 in 2024. However, when considering fair market value, which includes unrealised capital gains on its water portfolio, the NAV per share increases to $1.59. The company reported $61 million in unrealised capital gains on its water entitlements, a significant figure that remains excluded from statutory financial statements due to accounting standards.
Portfolio and Valuation Insights
The water portfolio remains the cornerstone of Rivco’s asset base, with permanent water entitlements valued at $286 million on a statutory basis and $230 million on a fair market value basis. Temporary water entitlements added a further $5.3 million. The independent valuation by Ricardo PLC, conducted monthly, supports the fair market value figures, although these are non-IFRS measures and not audited.
Outlook and Market Position
With a robust balance sheet, strong profit growth, and consistent dividend payments, Rivco Australia appears well-positioned to capitalise on opportunities in the water resources sector. The continuation of the Dividend Reinvestment Plan signals confidence in future growth, while the sizeable unrealised gains hint at potential upside not yet reflected in statutory accounts.
Bottom Line?
Rivco’s strong 2025 results set the stage for continued growth, but investors will watch closely how unrealised gains translate into future earnings.
Questions in the middle?
- How will unrealised capital gains impact future reported earnings and dividends?
- What are the risks or opportunities in the water entitlements market affecting Rivco’s portfolio?
- How might participation in the Dividend Reinvestment Plan influence share price and liquidity?