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RED DEER, AB, May 17, 2012 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO) ("High Arctic" or the "Corporation") is pleased to announce that its Board of Directors has approved the implementation of a dividend policy that provides for the payment of a monthly dividend. The Board of Directors has declared the Corporation's first monthly dividend at a rate of $0.01 per share, payable on June 14, 2012, to holders of High Arctic common shares of record at the close of business on May 31, 2012. This equates to an annual dividend of 12 cents per share. The ex-dividend date is May 29, 2012. The dividend is designated as an "eligible dividend" for Canadian Income Tax purposes.
"High Arctic has generated consecutive cash flow growth in each of the last four quarters resulting in a trailing twelve month Adjusted EBITDA of $37.2 million as at March 31, 2012. A monthly dividend allows our shareholders to enjoy the benefit of our success," said Bruce Thiessen, CEO of High Arctic. "With a strong cash position and solid cash generating capabilities, we believe we can both pay a monthly dividend and continue to capitalize on additional growth opportunities to enhance shareholder value."
High Arctic expects the record date for any future monthly dividends to be on or about the third last business day of the month with the payment date to be on or about the 14th day of the following month.
The amount of future cash dividends, if any, will be subject to the discretion of the Board of Directors of High Arctic and may vary depending on a variety of factors, including fluctuations in earnings, working capital and capital expenditure requirements, debt service requirements, foreign exchange rates, the satisfaction of solvency tests imposed by the Business Corporations Act (Alberta) for the declaration and payment of dividends, and other conditions existing from time to time.
This news release may contain forward-looking statements relating to expected future events and financial and operating results of the Corporation that involve risks and uncertainties. Actual results may differ materially from management expectations, as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed in both the Corporation's Management Discussion and Analysis for the year ended December 31, 2011 and in the Annual Information Form for the year ended December 31, 2011 found on SEDAR (www.sedar.com). Due to the potential impact of these factors, the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
About High Arctic
The Corporation is a global provider of specialized oilfield equipment and services, including drilling, completion and workover operations. Based in Red Deer, Alberta, High Arctic has domestic operations throughout western Canada and international operations in Papua New Guinea.
For further information:
Chief Financial Officer
403 340 9825