Board approves payment of unfranked dividend: Botten

 OIL Search managing director Peter Botten says the company’s board has approved the payment of a 2015 final unfranked dividend of US$0.04 (four cents) per share.

Oil Search announced its results for year ending December 31, 2015, including a 2015 core profit of US$359.9 million (K1076m).

“The board has approved the payment of a 2015 final unfranked dividend of four US cents per share,”  Botten said. 

“Including the six US cents per share interim dividend, the total dividend payment for the 2015 full year is 10 cents per share, compared to 14 US cents per share in 2014, which comprised an ordinary dividend of 10 cents and a four US cents per share special dividend. 

He said the 2015 payment represented a dividend payout ratio of 42 per cent, consistent with the board’s dividend policy of distributing between 35 percent and 50 per cent of core profit “The board believes the company’s proportional dividend policy, where dividend payments are related to the company’s profitability, remains appropriate in the current volatile oil price environment,” he said.

“Oil Search’s dividend reinvestment plan remains suspended, given our current financial strength.”

Botten said the company continued to promote project operating stability through partnerships with the Government and other stakeholders. 

“This has already delivered various infrastructure projects, roads, key buildings and facilities and various health projects in the country. 

“As part of developing in-country uses of gas and power generation, the company signed two power generation agreements with PNG Power in 2015, which include a deal to supply 30MW from a biomass project in the Markham Valley in Morobe.