Gibson Energy (TSE:GEI), a Canada-based energy company, declared a 7 percent increase to its quarterly dividend while reporting higher segmented profit and distributable cash flow in the fourth quarter.
The dividend increase to $0.32 per common share is payable on April 17 to shareholders of record at the close of business on March 31, the Calgary, Alberta-based company said in a statement late yesterday.
Total segment profit increased to $129.5 million in the October-to-December quarter, from $123.3 million, in the year-earlier period.
Distributable cash flow generated in 2014 was $265 million, up from $253.2 million a year earlier.
“We achieved record cash flow generation, resulting from successful growth capital projects commissioned in the year, and we announced the largest forward-looking growth spending plans in the company's history," chief executive officer Stewart Hanlon said in the statement.
On December 9, Gibson announced its capital spending plans for 2015 at $510 million of which $435 million is allocated to growth spending. Preliminary growth capital spending for 2016 is $450 million, it said.
Hanlon said that as the company progresses into 2015, “we remain mindful of the challenged cash flow situation for many of our customers and are working with them to find solutions that can also optimize utilization of Gibson's integrated assets.”
Shares fluctuated between gains and losses and were trading at C$28.05, up 1.2 percent, at 9:49 a.m. in Toronto.