Boston, MA 09/22/2014 (wallstreetpr) – Paragon Offshore PLC (NYSE:PGN) announced plans to start cash dividend of $0.125 per fully diluted share on a quarterly basis. It accounts for dividend of $0.50 per fully diluted share annually. The first dividend will be declared by Paragon in November 2014. Randall D. Stilley, President and the CEO, has talked about its capital allocation strategies in a conference held in Oslo last week.
The management view
Randall D. Stilley, President and the CEO, said that Paragon Offshore PLC (NYSE:PGN) is delighted with the robust review of its capital allocation opportunities. Seeing the progress, the board has decided to start the quarterly dividend program. The decision reflects the strength in the business and its future-plans. The size of the dividend is well defined and sustainable as per Paragon’s financial strength. The quarterly dividend program leaves ample room for future growth. Also, Paragon Offshore PLC (NYSE:PGN) is considering additional measures like share repurchases, accretive acquisitions and debt reduction plans. The idea is to enhance long-term value to its shareholders.
The decision of quarterly cash dividends is based on several factors including future business prospects, share price, existing opportunities, earnings, financial conditions, capital requirements and many others. The first quarterly dividend will be subject to the completion of company’s audited UK statutory balance sheet. It is anticipated to complete by November 2014.
The financial status
During the conference held in Oslo, Stilley spoke on the strength of Paragon’s business and steady market outlook for the jackup business. Paragon has history of delivering reliable, cost effective and safe services to its customers. Stilley said that the company is performing well in the standard specification drilling market. It has got a buildup of $2.3 billion as of June 30, 2014. There are many other contracts lined up that will add to the existing backlog of the company. Overall, the business fundamentals of Paragon Offshore PLC (NYSE:PGN) remain strong and provide the company with an opportunity to reward its shareholders.