Toronto-headquartered geothermal operator and developer Polaris Infrastructure Inc. (PIF) with a focus on operation, acquisition and development of renewable energy projects in Latin America, announced the allocation of “a quarterly dividend of US$0.12 per common share outstanding. This dividend will be paid on February 22, 2017 to shareholders of record at the close of business on February 17, 2017.
The US$0.12 dividend per share for the fourth quarter of 2016 equates to approximately a 31% payout ratio, while if annualized on a full-year 2016 basis, US$0.48 dividend per share equates to approximately a 42% payout ratio.
The increase in quarterly dividend (from US$0.11 to US$0.12) reflects a 9% increase in dividend versus the third quarter of 2016, and a 20% increase from the US$0.10 per share quarterly dividend initiated in March of 2016. The latest dividend increase is viewed as sustainable and is below the Company’s target payout ratio. The board of directors of Polaris Infrastructure remains committed to paying a quarterly dividend and will evaluate further dividend increases if considered appropriate at such time.
Marc Murnaghan, Chief Executive Officer of Polaris Infrastructure commented, “We are pleased that our efforts to increase the free cash flow generation of the San Jacinto project have met our preliminary expectations, and are looking forward to further growth initiatives in 2017. This modest additional increase in our quarterly dividend provides the flexibility to continue to strategically invest in the San Jacinto project, while continuing to reward shareholders who have supported our growth efforts to date.”
Source: Company release