Oilman launches new dividend policy – The Royal Gazette

Created: Sep 20, 2022 08:00

DHT Holdings: announces new dividend policy (file photo)

Bermuda-based DHT Holdings Inc, the crude oil transportation company, announced a new dividend policy with 100% of net income returned to shareholders in the form of quarterly cash dividends.

The new policy will be implemented from the third quarter of this year.

Svein Moxnes Harfjeld, President and Chief Executive Officer, said: “The key considerations underpinning the new policy are the strength of our balance sheet and liquidity position, combined with the absence of current capital expenditure plans. important.

“The timing of the decision and its implementation reflect our constructive market outlook.”

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Valaris Limited, the Bermuda-based offshore drilling services company, received a $40 million payment from its joint venture ARO Drilling, representing a partial prepayment of its shareholder notes receivable.

As a result of this payment, Valaris has notes receivable from shareholders totaling approximately $403 million, including $225 million due in October 2027 and approximately $178 million due in October 2028.

President and CEO, Anton Dibowitz, said, “ARO is an important strategic asset for Valaris, providing a unique partnership with the largest jackup customer in the world.

“We are excited about ARO’s growth prospects over the next few years through its 20-rig construction program, supported by attractive long-term contracts with Saudi Aramco.

He added, “ARO is actively exploring financing options for its new rigs and expects financing to be secured prior to delivery of New Builds One and Two in the first half of 2023.

“The partial prepayment of our shareholder notes demonstrates ARO’s confidence that the new build rigs will be funded by third-party funding and cash from ARO’s operations.

“We do not expect Valaris or Saudi Aramco to need to provide additional financing to ARO to fund the new build program.”

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Valaris’ board of directors has authorized a stock buyback program under which the company can purchase up to $100 million of outstanding common stock of Valaris.

Mr. Dibowitz said, “Valaris’ management team and Board of Directors remain focused on the continued execution of our strategic priorities, maximizing earnings and free cash flow, and capitalizing on future opportunities. as they arise.

“This share buyback authorization provides the flexibility to timely return capital to shareholders over time.

“We will continue to take a disciplined and balanced approach to capital allocation, consistent with our goal of creating long-term shareholder value.”

The $100 million authorization has no fixed expiration and can be changed, suspended or terminated at any time, the company said.

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Eligible option holders of Flex LNG Ltd, the Bermuda-based liquefied natural gas transmission company, exercised stock options in accordance with previously announced terms.

Øystein M Kalleklev, CEO of Flex LNG Management AS, exercised 62,500 stock options and subsequently sold 62,500 ordinary shares.

As a result of the exercise, Mr. Kalleklev holds 50,000 common shares and 187,500 stock options of the company.

Knut Traaholt, CFO of Flex LNG Management AS, exercised 30,000 stock options and subsequently sold 30,000 ordinary shares.

Following the exercise, Mr. Traaholt holds 90,000 stock options in the company.

Anton Dibowitz, President and CEO of Valaris (file photo)

Øystein Kalleklev, CEO of Flex LNG Management AS (file photo)