DIVIDEND INFORMATION

DIVIDEND POLICY

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 2019, plus an agreement for a further option for one sister rig, the Company is now in a growth and investment phase. The Board of Directors has, therefore, decided to suspend the dividend and will resume same when the Company again reaches an appropriate free cash flow situation.

DIVIDEND INFORMATION

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.