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High Arctic has 20% jump in dividend

High Arctic Energy Services Inc. (TSX: HWO) has announced a 20 per cent increase in its monthly dividend, to 1.5 cents per share, effective April 14.

High Arctic Energy Services Inc. (TSX: HWO) has announced a 20 per cent increase in its monthly dividend, to 1.5 cents per share, effective April 14.

“The increase in the dividend rewards our shareholders for the strong financial results of 2013 and reflects our expectations for a solid 2014,” said Michael Binnion, chairman of the Red Deer-based company’s board of directors.

High Arctic released its 2013 financial results last Friday. These showed a four per cent increase in revenues, to $152.7 million from $146.2 million in 2012.

Net earnings were $24.6 million, down 15 per cent from $28.8 million the previous year; and earnings per basic share slipped to 51 cents from 62 cents.

For the final quarter of 2013, the company’s revenues were up slightly from the same three-month period in 2012, to $38.7 million from $38.6 million.

Net earnings rose eight per cent to $6.4 million from $5.9 million, while earnings per share were 13 cent, unchanged from the three months ended Dec. 31, 2012.

“High Arctic posted another strong performance in 2013, led by our continued growth on PNG (Papua New Guinea),” said Dennis Sykora, High Arctic’s CEO, in a release.

“We are excited by the opportunities ahead in PNG with the country’s first LNG (liquefied natural gas) facility scheduled to come on stream this year.”

The release noted that High Arctic’s growth in revenue during 2013 was driven by increased activity in Papua New Guinea, mainly due to a second active drilling rig there operating for a longer period, and having a larger fleet of rental equipment.

High Arctic provides specialized oilfield equipment and services. It has operations throughout Western Canada and in Papua New Guinea.