i3 Energy Plc is to pay out £2.2mln, 0.2p per share, in interim dividends which added to July’s special dividend takes payments to 0.36p per share in the year to date.
The company’s interim results highlight the transformational period in which the company acquired producing assets in Canada which have delivered cash flow into what had been a pre-revenue exploration and field development company.
Acquired operations sustained an average production rate above 9,000 barrels oil equivalent per day over the six months ended June 30, and the production footprint was expanded further with the subsequent closing of the Cenovus acquisition which boosted volumes up to 18,741 boepd.
“We are now a substantial production company with a full cycle E&P portfolio containing multiple options to create and return value to our shareholders,” said chief executive Majid Shafiq. “We will continue our efforts in the remainder of 2021 and beyond to grow our production business and build the scale required to efficiently and effectively maximise and sustain value creation."
I3 said its focus on the remainder of the year is on the continued growth of its Canadian business, the farm-out efforts for its UK offshore licences to fund wells at the Serenity and/or Liberator projects, and its stated dividend policy to return 30% of free cash flow back to shareholders.
It also noted that it is continuing to develop our ESG strategy and publishing our maiden annual sustainability report.
Stocbroker WH Ireland, in a note, meanwhile commented: “We were surprised by the strength of the dividend i3 Energy announced in respect of the first half of 2021 of 0.2p per share or £2.2mln - a clear statement by the board that the return of cash to shareholders will be a priority.”