Highlights

  • Rivco paid a fully franked 1.8 cent Dividend on 30 October 2026, down from April's 3.72 cent payment.
  • Leases covered 80% of the water portfolio from 1 July 2026, up from 54% at 31 December 2025.
  • Net profit after tax fell to A$2.1 million in the half to 30 June 2026, without entitlement sale gains.
  • Unaudited pre-tax net asset value stood at A$1.74 per share at 30 September 2026, up one cent.

Rivco Australia Ltd (ASX:RIV) has moved its water portfolio further towards contracted income, with 80% of its 61.3 gigalitres of entitlements leased from 1 July 2026, while shareholders received a smaller dividend at the end of October.

The fully franked 1.8 cent payment, made on 30 October 2026, compares with the 3.72 cent final dividend paid in April and comes ahead of a revised dividend framework scheduled to apply from January 2027.

Lease Book Takes Centre Stage in the Water Portfolio

Rivco supplies water to irrigators in sectors such as tree nuts, grapes, dairy, citrus, cotton and rice, helping customers manage water risk over several seasons. The first half of 2026 was its first period as a fully internalised business.

At 30 June 2026, the company held 61.3 GL across 18 entitlement types and zones, with permanent water Assets valued at A$309.0 million. Leases covered 39,917 ML from 1 July 2026 and Forward Contracts added 2,000 ML. Committed Revenue for the 2026/27 water year totals A$11.4 million including forwards, with leases carrying an effective Yield of 4.3% and a weighted average term of 3.5 years.

Half-Year Profit Falls Without Entitlement Sales

Net profit after tax for the half-year to 30 June 2026 was A$2.1 million, compared with A$24.5 million a year earlier, when the result included A$34.3 million of realised gains on entitlement sales. Lease revenue rose 3% to A$3.0 million, while water allocation sales fell to A$2.8 million, and about A$2.6 million of temporary allocations was carried into 2026/27. Operating and finance costs dropped to A$2.5 million from A$9.1 million.

Debt rose to A$38.0 million after A$15.5 million was drawn to buy entitlements, lifting the loan-to-valuation ratio to 12% against a 40% covenant. Rivco also restarted its on-market buy-back in May 2026, acquiring 1.1 million shares at an average of A$1.42. In its September 2026 monthly report, the company put unaudited pre-tax net asset value at A$1.74 per share and post-tax value at A$1.58.

New Dividend Framework and Milestones Ahead

Rivco has paid 18 consecutive dividends since November 2017. From 1 January 2027, the board plans semi-annual payments in April and October, combining a core component of 60% to 100% of adjusted net profit after tax with a discretionary 0% to 100% of after-tax realised gains, with all payments remaining subject to board discretion.

Management expects returns to be increasingly supported by recurring lease income while retaining flexibility for entitlement sales and acquisitions. Its updated Investment thesis points to growing Demand against a fixed and shrinking water Supply in the Lower Murray. Full-year 2026 results and 2027 dividend guidance are scheduled for February 2027, with the Annual General Meeting planned for April or May 2027.

Shares were unchanged at A$1.24 on 2 November 2026, giving a Market Capitalisation of A$194.43 million, and were down 15.65% over 12 months.