Second Increase to Regular Quarterly Cash Dividend This Year
Ensco’s Dividend Yield Now Among Top 5% of S&P 500 Companies
LONDON--(BUSINESS WIRE)--
Ensco plc (NYSE: ESV) announced today that its Board of Directors has
declared a regular quarterly cash dividend of US$0.75 per Class A
ordinary share payable on 20 December 2013 to holders of Ensco’s shares
as of the 9 December 2013 record date. The prior quarterly dividend was
$0.50 per share.
Based upon today’s closing stock price of $57.07 per share and the new
$3.00 per share annualized dividend, Ensco’s dividend yield is
approximately 5.3%. This is among the top 5% of all S&P 500 companies.
The new annualized dividend is approximately 55% of Ensco’s trailing
twelve months earnings per share.
Chairman, President and Chief Executive Officer Dan Rabun stated, “Our
strong balance sheet, $11 billion in contracted revenue backlog and
positive outlook for future earnings and cash flow growth support this
increase to our quarterly cash dividend. Our active fleet has grown with
the commencement of four additional rigs during the past year alone and
we will continue to grow our active fleet as we deliver six new rigs
currently under construction.”
Mr. Rabun added, “Management and the Board believe the new dividend
payout is prudent and sustainable, as well as responsive to investors
who have shared constructive feedback regarding returning more capital
to shareholders. We expect to continue to have adequate liquidity to
fund our rigs under construction, while maintaining flexibility to
return additional capital to shareholders and invest in new rigs that
leverage our intellectual property.”
Today’s dividend increase announcement is the second by Ensco this year.
On 26 February 2013, the Company announced a 33% dividend increase to
$0.50 per share. On 20 May 2013, Ensco’s shareholders approved a $2
billion share buyback authorization over a five-year period.
As of 30 September 2013, Ensco’s total debt-to-capital ratio was 28%,
the second lowest among major offshore drilling contractors. Cash and
cash equivalents totaled $325 million and a $2 billion revolving credit
facility was fully available.
Ensco plc (NYSE: ESV) brings energy to the world as a global provider of
offshore drilling services to the petroleum industry. For more than 25
years, the company has focused on operating safely and exceeding
customer expectations. Ensco is ranked #1 for total customer
satisfaction with top honors in 10 of 16 categories in the most recent
annual survey by EnergyPoint Research. Operating the world’s newest
ultra-deepwater fleet and largest fleet of premium jackups, Ensco has a
major presence in the most strategic offshore basins across six
continents. Ensco plc is an English limited company (England No.
7023598) with its registered office and corporate headquarters located
at 6 Chesterfield Gardens, London W1J 5BQ. To learn more, visit our
website at www.enscoplc.com.
Statements contained in this press release that are not historical
facts are forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements include words or phrases such as
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,”
“project,” “could,” “may,” “might,” “should,” “will” and similar words
and specifically include statements regarding expected financial
performance, day rates and backlog; and general market, business and
industry conditions, trends and outlook. Such statements are
subject to numerous risks, uncertainties and assumptions that may cause
actual results to vary materially from those indicated, including
downtime and other risks associated with offshore rig operations; and
possible cancellation or suspension of drilling contracts as a result of
mechanical difficulties, performance or other reasons. In
addition to the factors described above, you should also carefully read
and consider “Item 1A. Risk Factors” in Part I and “Item 7. Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” in Part II of our most recent annual report on Form 10-K,
which is available on the SEC’s website at www.sec.gov
or on the Investor Relations section of our website at www.enscoplc.com.
Each forward-looking statement speaks only as of the date of the
particular statement, and we undertake no obligation to publicly update
or revise any forward looking statements, except as required by law.
Source: Ensco plc