INTERIM dividends at Cross-Harbour Tunnel Co have been slashed by almost 20 per cent as a direct result of the firm's first rights issue last September.
The dividend for the second quarter will be 27 cents, down from 35 cents last year. The dividend was also slashed in the first quarter, with a payout of 27 cents instead of 33.5 cents.
The company warned shareholders that dividends would have to be reined in when it announced its first rights issue in nearly 20 years of listed status on August 10 last year.
The firm raised $830 million with the one-for-two issue and used the cash to invest in a 37.5 per cent share of the $7.5 billion Western Harbour Crossing project.
At the time it said dividends would have to be cut back to between 15 and 20 per cent. However, the extra shares in issue meant the cost of dividends rose to $103.48 million from $85.54 million at the same stage in 1993.
Turnover increased marginally from $335.3 million to $349.42 million.