The Company’s dividend policy has been to pay a quarterly dividend in support of its main objective to maximise returns to shareholders. All of the Company’s free cash flow was distributed subject to maintaining a robust cash buffer to support working capital requirements, planned capital expenditure and uncertain future market prospects.
Since June 2013 Awilco Drilling has consistently paid a quarterly dividend and during this time has distributed USD 12.00 (NOK 83.22) per share in this respect. With the ordering of one new-build high-end semi submersible rig in March this year, plus an agreement for a further three independent rig options, the Company is now in a growth and investment phase. The Board of Directors has, therefore, on 14 August 2018 decided to suspend the dividend and will resume same when the Company again reaches an appropriate free cash flow situation.
|Earnings Quarter||Dividend per Share (in USD)||Dividend Paid per Share (in NOK)||Ex Dividend Date on Oslo Stock Exchange||Payable Date|
|Q1 2018||0.20||1.6496||22 May 2018||22 June 2018|
|Q4 2017||0.20||1.5474||20 February 2018||23 March 2018|
|Q3 2017||0.20||1.6560||21 November 2017||15 December 2017|
|Q2 2017||0.20||1.5640||22 August 2017||22 Septermber 2017|
|Q1 2017||0.20||1.6920||23 May 2017||23 June 2017|
|Q4 2016||0.20||1.6910||21 February 2017||24 March 2017|
|Q3 2016||0.20||1.6680||22 November 2016||16 December 2017|
|Q2 2016||0.10||0.8240||23 August 2016||23 September 2016|
|Q1 2016||0.10||0.8254||24 May 2016||24 June 2016|
|Q4 2015||0.25||2.1101||23 February 2016||18 March 2016|
|Q3 2015||0.50||4.3190||24 November 2015||18 December 2015|
|Q2 2015||0.50||4.0760||25 August 2015||25 September 2015|
|Q1 2015||0.50||3.8752||19 May 2015||19 June 2015|
|Q4 2014||1.00||8.1885||17 February 2015||20 March 2015|
|Q3 2014||1.15||8.4392||18 November 2014||19 December 2014|
|Q2 2014||1.15||7.3145||19 August 2014||19 September 2014|
|Q1 2014||1.15||6.8908||19 May 2014||20 June 2014|
|Q4 2013||1.10||6.5021||4 March 2014||20 March 2014|
|Q3 2013||1.10||6.7353||20 November 2013||20 December 2013|
|Q2 2013||1.00||5.9160||21 August 2013||20 September 2013|
|Q1 2013||1.00||5.7610||24 May 2013||20 June 2013|
Awilco Drilling’s functional currency is US Dollars (USD) and dividends per share are therefore announced in USD. However, because Awilco Drilling’s shares are registered in Norway and the Norwegian central securities depository (‘VPS’) only handles Norwegian Kroner (NOK), the dividends are paid out in Norwegian Kroner (NOK) at the USD/NOK rate on the day Awilco Drilling transfers money into VPS’ account. Investors who are receiving payments from agent banks in other currencies than NOK will therefore receive a dividend payment after a second conversion, from NOK to the final currency.
U.S. DIVIDEND CLASSIFICATION
This statement is provided for shareholders who are United States persons for purposes of the U.S. Internal Revenue Code of 1986, as amended (“Code”) and the regulations promulgated thereunder; it is not relevant to other shareholders.
Although dividends, generally, are subject to tax in the United States as ordinary income, the code provides for a reduced federal income tax rate imposed on “qualified dividends”. Awilco Drilling PLC cannot guide its U.S. shareholders on how Awilco Drilling PLC’s dividends should be classified; however, the following information may be of interest to shareholders or their tax advisors.
Based on the review of Awilco Drilling PLC’s consolidated financial statements for the taxable years 2012, 2013, and 2014 conducted for determining whether Awilco Drilling PLC is considered a “passive foreign investment company” (“PFIC”) for U.S. federal income tax purposes, it appears that, for the taxable years 2012, 2013, and 2014, Awilco Drilling PLC did not satisfy the passive income or the passive assets thresholds set by the PFIC provisions of the Code. However, the PFIC status of Awilco Drilling PLC is a fact-intensive determination that must be made on an annual basis after the close of each taxable year and will depend on the structure and activities of Awilco Drilling PLC, the composition of Awilco Drilling PLC’s assets and income and the value of Awilco Drilling PLC’s tangible and intangible assets from time to time. Therefore, there can be no assurance that Awilco Drilling PLC will not be considered a PFIC for the taxable year 2012, 2013, and 2014, or any other taxable year.
U.S. shareholders are urged to consult their own tax advisor regarding the tax consequences applicable to them with respect to their investment in Awilco Drilling PLC’s stock.