Boston, MA 10/03/2013 (wallstreetpr) – On October 2, KBR Inc. (NYSE:KBR) declared a quarterly dividend payout of $0.08 per share to its stock holders. It will be paid out on January 15 to all shareholders on record as of December 13. The ex- dividend date is December 10. This translates to a forward dividend yield of 0.94% with a total of $0.32 paid out as quarterly dividends over the past 12 months.
The stock staged a 1.95% upward rally on the back of this news. It ended at an even$34 per share as of close of business on October 2. At these valuations, the share price is just 6.8% down from its 52 week high valuations. It has a market cap of $5 billion.
In related news, on September 27, KBR saw closure to a decade long legal battle which it was waging against Pemex which is a public sector company backed by the Mexican government. KBR will receive close to $465 million from a arbitration process officiated by a US Judge. The issue traces it origin to 1997 when KBR built two huge platforms for oil drilling in the seas off the cost of Mexico. KBR had taken the oil major to court pressing for contracted amount which remained unpaid even after project execution.
On September 9 KBR succeeded in getting a 5 year extension to its existing contract with DuPont. KBR will continue to be the main partner providing construction and maintenance services to DuPont. DuPont is set on a massive expansion exercise which envisions building 9 new drilling sites across the US north east and will extend into gulf coast region. While the full monetary details of the contract were not shared by either of the companies and one has to wait till KBR reports its 3Q results to estimate the deal size.