Following solid fourth quarter results, the Board of Directors of Switzerland-based Noble Corporation (NE) has approved a return of capital to shareholders. The company will return total 1.08 Swiss francs (CHF) per share − approximately US$1 − including a special one-time payout of 0.56 CHF (approximately 52 cents). Distribution to shareholders in the form of capital reduction is exempt from Swiss withholding tax, the company said.
The payments will be made in U.S. dollars and is subject to shareholder authorization at the company’s 2010 annual general meeting, which is scheduled to be held on April 30, 2010.
While the regular return of capital will be paid in four equal installments scheduled for August 2010, November 2010, February 2011 and May 2011, the special payout will be a one-time phenomenon scheduled for August this year.
Though the news is no doubt significant for Noble’s investors, other players in the oilfield services business have also been involved in returning cash to shareholders. Diamond Offshore Drilling Inc. (DO) has been actively returning cash as well. Diamond maintained its special cash dividend of $1.875 per share in the fourth quarter in addition to its regular quarterly dividend of 12.5 cents per share (50 cents per share annualized).
Noble’s strong cash flow, solid balance sheet and backlog, coupled with favorable long-term fundamentals provide the company not only the strength to return cash to shareholders, but also to continue to invest in fleet, execute share repurchases and pursue attractive opportunities in the offshore drilling industry.
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Read the full analyst report on “DO”
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