- Calima Energy (CE1) launches half-year dividend program beginning in the second half of 2022 following the ongoing strong performance of its production assets
- The dividend payout will total $2.5 million, reflecting a half yearly yield of 2.4 per cent at the current share price
- Calima also intends to undertake an on-market buy-back of ordinary shares under the Corporations Act 2001, commencing from June 1 for up to 12 months
- The Board believes that the company’s current share price does not accurately reflect the underlying value of Calima’s assets, and the share buy-back represents an opportunity to improve the value of the remaining shares on issue
- Calima Energy shares are up 8.33 per cent, trading at 19.5 cents as of 11:45 am AEST
Calima Energy (CE1) has launched a half-year dividend program beginning in the second half of 2022 following the ongoing strong performance of its production assets.
The dividend payout will total $2.5 million, reflecting a half yearly yield of 2.4 per cent at the current share price.
The timing of the dividend, including the record date and the ex-date, will be advised in due course.
The company said subsequent dividend distributions will be influenced by capital expenditure, energy prices, well performance and the maturity of the current hedge book that begins in December this year.
Calima also intends to undertake an on-market buy-back of ordinary shares under the Corporations Act 2001, which allows the company to buy-back up to 10 per cent of its issued capital in any 12-month period without shareholder approval.
Commencement of the share buy-back from June 1 for up to 12-month period.
The Board believes that the company’s current share price does not accurately reflect the underlying value of Calima’s assets, and the share buy-back represents an opportunity to improve the value of the remaining shares on issue.
The share buy-back is also expected to improve return on equity, cash flow per share and earnings per share for all shareholders who continue to hold shares in Calima.
Further, the Board will continue to assess options to distribute additional surplus capital, particularly if the company is able to monetise the inherent value of its Montney assets.
The company’s activities will not be restricted by the share buy-back and will be funded from operations, said the company.
Calima Energy shares were up 8.33 per cent, trading at 19.5 cents as of 11:45 am AEST.