PostNL boosted by profit rise, future dividend hopes

* Cash operating income up 45 percent at 122 million euros

* CEO says Parcels unit will continue to grow

* No dividend before 2016 at earliest (Adds analyst comment, share move.)

By Toby Sterling

AMSTERDAM, Feb 23 (Reuters) - PostNL reported better than expected fourth-quarter profits, with growth in its parcels business and cost savings more than compensating for falling volumes in the Dutch group's main mail delivery business.

The company also said it was trying to resume dividend payments next year and that possibility, combined with the results, pushed its shares 9.3 percent higher to 3.82 euros in Amsterdam. They are now up 11 percent over the past year, still lagging a 17 percent rise for the benchmark Dutch AEX index of leading shares.

Underlying cash operating income was up 45 percent at 122 million euros ($139 million), the company said. Analysts polled by the company had been expecting a figure of 107 million euros.

"Cost savings are coming in strongly and price increases have compensated for the mail volume declines", said ING analyst Marc Zwartsenburg, who rates shares a "Buy".

He said the company's outlook was not quite as strong as he hoped but it was "overall a strong set of results."

PostNL has overseas operations in Britain, Italy and Germany. Postal companies such as Royal Mail (LSE: RMG.L - news) and Deutsche Post (LSE: 0H3Q.L - news)

are also having to contend with falling letter volumes but distributing more parcels as online retailing expands.

PostNL said its parcel sales grew 12 percent and its parcel unit increased underlying operating income by 36 percent to 34 million euros in the quarter.

"This growth is the main driver for the improved performance," said Chief Executive Herna Verhagen. "We expect Parcels to continue its growth and strengthen its market position," she added.

Verhagen forecast underlying cash operating income in 2015 would come in at around 300 million euros, up from 293 million euros in 2014.

PostNL cannot pay a dividend under Dutch law, because it has negative shareholder equity.

But it said on Monday it hopes to pay a dividend in 2016 but this would depend on operational performance, interest rates, and the value of its 14.66 percent stake in TNT Express .

Higher interest rates would reduce PostNL's pension fund liabilities, which are carried on the company's balance sheet.

"Solely based on estimated retained earnings of 200-250 million euros per annum, cash dividend looks unrealistic in 2016," said ABN Amro analyst Maarten Bakker.

But even if the company can't pay a 2016 dividend, "2017 looks more realistic", he said, adding that he thought markets had begun pricing in a return to dividend only in 2018. ($1 = 0.8790 euros) (Reporting By Toby Sterling; Editing by Greg Mahlich and Keith Weir)