Atwood Oceanics Eliminates Dividend
February 18 2016 - 5:30PM
Dow Jones News
By Josh Beckerman
Atwood Oceanics Inc., a drilling contractor that sharply reduced
its dividend in November, has eliminated its quarterly payout due
to challenging market conditions.
Atwood previously reduced its dividend to 7.5 cents from 25
cents.
The company said Thursday that the latest move provides "greater
flexibility to weather the current downturn." The elimination will
save the company nearly $5 million a quarter.
As the energy sector faces a prolonged pricing slump, companies
including Energen Corp. and Precision Drilling Corp. recently
suspended their dividends, while Cenovus Energy Inc. and Devon
Energy Corp. reduced their payouts.
Standard & Poor's Ratings Services warned last month that it
expects the offshore contract drilling industry to remain depressed
through next year and predicted Atwood's asset diversity and cash
flow base would shrink.
Atwood shares were recently down 3% to $6.34 in after-hours
trading.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
February 18, 2016 17:15 ET (22:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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