Niterra: Sets 6% DOE target, raises annual dividend forecast

Niterra will target a stable dividend at about 6% DOE through the fiscal year ending March 2030. The new policy, which takes effect from the fiscal year ending March 2027, replaces a framework combining a stable dividend with a 4% DOE floor and an earnings-linked component targeting a payout ratio of about 10%.

Niterra cited efforts to strengthen earnings and maintain its financial foundation, as well as a greater focus on capital efficiency, as reasons for the change. It will continue to consider business portfolio reform, human capital, research and development, and capital investment in allocating funds. The company also retained its policy of using capital above an appropriate level for shareholder returns, including share buybacks.

Niterra set its interim dividend at ¥119 per share, with a record date of Sept. 30, 2026. That is ¥14 above its previous forecast of ¥105 and higher than the ¥93 paid a year earlier.

The total dividend is ¥23.217 billion, funded from retained earnings. The payment takes effect on Nov. 30, 2026. The decision adds to shareholder returns in line with the new policy of raising the DOE target.

Niterra revised its year-end dividend forecast to ¥59.50 per share, bringing the annual payout to ¥238 on a pre-split basis. The annual forecast is up from the previous estimate of ¥210 on the same basis and exceeds the previous year's ¥205.

Niterra split each share into two, effective Oct. 1, 2026. The year-end amounts in parentheses are on a pre-split basis and should be distinguished from the per-share amounts after the split. The company will also exclude gains and losses on its LP investments, announced in July 2023 and recorded in retained earnings, from dividend calculations until they are realized in cash.