Dividend for 2022
Following fulfilment of the absolute restrictions under the company’s bond loans, OKEA is for the first time in a position to distribute dividends to its shareholders. The company’s cash position is currently solid, outstanding debt has been reduced through buy backs, and OKEA has today also announced a significant step forward in its growth ambition without the need for new financing. Further details regarding the USD 117.5 million transaction to acquire a portfolio of assets from Wintershall Dea is outlined in a separate stock exchange notice issued by OKEA today.
Based on the terms under OKEA’s bond loans, the maximum dividend capacity is limited to the lower of i) 50% of net profit after tax for the previous calendar year (as defined in the OKEA02 bond loan1)), and ii) 50% of net profit after tax for the previous four quarters (as defined in the OKEA03 bond loan2)). On this basis and, as of the day of this notice, the maximum dividend capacity for 2022 is NOK 301.6 million. Subject to the definition in OKEA03, this amount may change.
The board has resolved to pay a cash dividend payment of NOK ~93.5 million (NOK 0.90 per share) in Q2 2022 and has stated an intention to distribute NOK 1.00 per share in Q3 2022 and Q4 2022 respectively (NOK ~207.7 million in total dividend payments intended for distribution in Q3 and Q4 2022). As such, the total planned dividend payments for 2022 is in line with the maximum amount allowed under the terms of OKEA’s bond loans.
The last day of trading including dividend rights for the June dividend payment of NOK 0.90 per share, is 1 June 2022. The ex-dividend date is 2 June 2022, and the record date is 3 June 2022. Payment is expected on or about 15 June 2022.
In line with the terms of the OKEA02 bond loan, OKEA is also offering bondholders a right to redeem an amount of bonds equal to the dividend payment at a price of 103 to par value (plus accrued interest) prior to making any distribution to shareholders. OKEA will issue a separate stock exchange notice where such offer to the bondholders in OKEA02 is formally made.
OKEA’s capital allocation framework
OKEA has an ambitious strategy built on three pillars comprising growth, value creation and capital discipline. Underpinning the strategy, OKEA has a capital allocation framework that gives first priority to existing activities and maintaining a solid balance sheet and financial flexibility. Thereafter, it prioritises ensuring a robust portfolio and seeking a healthy balance between growth and dividends.
OKEA strives to create value for its shareholders in the form of net asset value and cash flow growth as well as direct shareholder returns by way of dividend payments. Dividends will be maintained and determined on an annual basis taking into account the company’s financial position and investment opportunities as well as the prevailing market conditions.
For as long as the bond loans remain outstanding, OKEA’s annual dividend capacity is limited to an amount equal to 50% of net profit as defined in the bond loans and as described above.
Notes
1) OKEA02: ISIN NO 0010826852 – FRN Open Callable Senior Secured USD 210,000,000 Bonds 2018/2023
2) OKEA03: ISIN NO 0010869175 – Senior Secured Callable USD 150,000,000 Bonds 2019/2024
For further information, please contact:
CEO, Svein Liknes, +47 917 67 704
CFO, Birte Norheim, + 47 952 93 321
About OKEA
OKEA ASA is a leading mid- to late-life operator on the Norwegian continental shelf (NCS) with a current target production of 18,500 – 20,000 boe per day in 2022 (before the asset acquisition from Wintershall Dea as announced today). OKEA finds value where others divest and has an ambitious strategy built on growth, value creation and capital discipline.
OKEA is listed on the Oslo Stock Exchange (OSE:OKEA).
More information at www.okea.no
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.
The stock exchange announcement was published by Kjersti Hovdal, VP accounting and controlling, OKEA ASA on 23 May 2022 at 06:01 CEST.