Dalrymple Bay Infrastructure Limited makes share buyback update

The company said it was committed to maintaining an investment grade balance sheet.

Dalrymple Bay Coal Terminal coal stock yard and loading jetty. Picture: Daryl Wright

Dalrymple Bay Infrastructure Limited has provided a major update about its on-market share buyback.

In an update to the ASX, the company announced it had approved changes to the on-market share buyback to purchase up to five million securities.

This represents about 2 per cent of the 255 million ordinary securities on issue not held by 49 per cent shareholder, Brookfield.

Stock buybacks involve the repurchasing of shares of stock by the company that issued them in an effort to return money to shareholders.

Subject to market conditions, the Dalrymple Bay buyback is expected to start immediately and run until December 31 2021.

The ASX update said DBI's forecast funds from operations supported the buyback and quarterly distributions, with the company committed to maintaining an investment grade balance sheet.

DBI managing director Anthony Timbrell said: "The share buyback demonstrates our commitment to increasing value for shareholders, while maintaining sufficient resources to fund operations, pay distributions and execute our growth plans.

"DBI's forecast funds from operations, underpinned by cash flow stability and an investment grade balance sheet, supports a sustainable distribution going forward."

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Originally published as Dalrymple Bay Infrastructure Limited makes share buyback update