Awilco: What Will Happen After Dividend Suspension?
Awilco Drilling shares have recently suffered a rapid decline following the decision to suspend the dividend, which was announced in the second-quarter report. Since then, the stock has recovered some ground, supported by increasing oil prices. Let’s look at the situation in more detail.
Having paid the outstanding long-term debt in May, Awilco finished the second quarter with $76 million of cash and zero debt. However, the necessity to finance the newbuild rig (or rigs, if the company...