The markets have run very fast leading to dropping yields because of rising stock prices. In such times of volatility, there are some cheap but still among Highest Paying Dividend Stocks that offer some sort of stability besides consistent returns.
Horizon Oil Limited (ASX: HZN)
For the half-year period that concluded on 31 December 2023, Horizon Oil Limited exhibited robust operational performance.
Production and sales volumes reached 763,145 barrels and 757,784 barrels, respectively, with the entire 2023 calendar year witnessing a significant uptick at 1,747,129 barrels and 1,731,571 barrels. The reported revenue for the half-year amounted to US$66.1 million, inclusive of hedge settlements, albeit representing a 13% decrease from the prior corresponding period. EBITDAX stood strong at US$44.0 million, accompanied by efficient cost management, with cash operating costs averaging around US$21.50 per barrel, inclusive of workover costs. The statutory profit before tax for the half-year marked a notable 9% increase, reaching US$26.6 million. However, the statutory profit for the period experienced a marginal dip, settling at US$18.257 million, down by 4%.
Horizon Oil Limited had entered a strategic agreement with Macquarie Mereenie to acquire a 25% non-operated participating interest in the OL4 and OL5 development licenses, housing the productive Mereenie conventional oil and gas field in Northern Territory, Australia. This acquisition, totaling US$27.6 million in headline cash consideration, is facilitated through a new five-year debt facility from Macquarie Bank. Concurrently, New Zealand Oil and Gas (NZOG), an existing joint venture partner, is acquiring an additional 25% participating interest under the same terms.
The quarter ending 31 March 2024 was a solid quarter delivering continued strong free cashflow. together with the cash received in April from the March Maari lifting. It accounted for more than covering the ~US$16 million (AUD 1.5 cents per share) dividends to shareholders recently.
The Company remains in a strong financial position with sustained high oil prices and production ensuring continuing to act on its strategy of realising value for shareholders.
Cromwell Property Group (ASX: CMW)
Cromwell Property Group had reported its half-year results for the period ended on 31 December 2023, revealing the impact of valuation pressures both locally and in Europe on the company's performance.
The operating profit for the half-year stood at $83.7 million, marginally down from the previous year's figure of $87.1 million, primarily due to asset sales. Despite challenges, the Net Operating Income (NOI) of the Australian Investment Portfolio increased by 1% on a like-for-like basis. However, the company reported a significant statutory loss of $271.4 million, influenced by a substantial $240.2 million decline in property valuations.
Total assets under management slightly decreased to $11.4 billion compared to the previous year. The investment portfolio occupancy rate remained stable at 93.4%, with a Weighted Average Lease Expiry (WALE) of 5.3 years, indicating a steady occupancy level and lease maturity profile.
Cromwell Property Group has demonstrated resilience by maintaining stable occupancy rates and dividends despite market challenges. It is actively improving its debt profile through various strategic measures including asset sales, lender diversification, and extending debt maturities. Cromwell has implemented an asset sale program to optimize its portfolio and increase shareholder value.
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