RED DEER, Alta. – High Arctic Energy Services Inc. (TSX:HWO) is increasing its monthly dividend by 25 per cent.
The Alberta-based oilfield services contractor active in Western Canada and Papua New Guinea announced Tuesday that the dividend will go up a quarter of a cent to 1.25 cents per share, effective with the monthly payout on April 12.
It will be payable to shareholders of record at the close of business March 28.
Based on Tuesday’s closing price of $2.31 per share, the dividend would produce an annual yield of just under 6.5 per cent.
“The increase in the dividend rewards our shareholders for the strong financial results of 2012 and our expectations that 2013 will be solid as well,” said board chairman Michael Binnion in a statement.
“The new dividend rate equates to an annual dividend amount of $7.5 million, which is 21.5 per cent of our reported cash flows provided by operations in 2012 of $34.9 million.”