High Arctic Energy Services Inc. (TSX:HWO) announced on Tuesday that it’s increasing its monthly dividend to 1.25 cents from one cent.
The change takes effect with the monthly payout on April 12, and is payable to shareholders of record as of March 28.
“The increase in the dividend rewards our shareholders for the strong financial results of 2012 and our expectations that 2013 will be solid as well,” said board chairman Michael Binnion, in a release.
Last week, the Red Deer-based company reported 2012 earnings of $28.8 million, up 60 per cent from $18 million in 2011. Revenues were $146.2 million, a 15 per cent improvement from $127.2 million.
Earnings per basic share were 62 cents, up from 40 cents.
For the final quarter of 2012, High Arctic’s net earnings were $5.9 million, down 24 per cent from the same period in 2011. Revenues were up four per cent, to $38.6 million from $37.1 million, and earnings per basic share were 12 cents, down from 17 cents.
The company said its operations in Papua New Guinea generated higher revenue in the fourth quarter, which helped offset slower activity in Canada.
“2012 proved to be a strong year for High Arctic and one which saw growth and adaptation in our chosen markets,” said High Arctic CEO Bruce Thiessen.
“In (Papua New Guinea), we continued to invest in our rental fleet, both with our primary customer and with new customers, helping us to grow our revenue base.
“In Canada, we experienced a strong start to the year as our operations focused on liquids-rich wells and are evolving to also provide services in the oil basins. This adaptation is important for the corporation, given the continuing low gas prices and the associated reduction in gas field activity.”