HOUSTON, May 5, 2014 /PRNewswire/ -- Tesco Corporation (NASDAQ: TESO) announced today that its Board of Directors has approved the initiation of a quarterly cash dividend to shareholders of its common stock and has authorized the repurchase of as much as $100 million of Tesco's common shares. These initiatives are designed to create a more balanced investment opportunity and return value directly to the company's shareholders.
The Board today declared a second quarter cash dividend of $0.05 per share of Tesco common stock. The dividend will be paid on June 2, 2014 to shareholders of record on May 22, 2014. Based on shares outstanding at March 31, total dividend payments to be made during the quarter ended June 30 will be approximately $2 million.
"We are delighted by the Board's decision following our in-depth review of our Strategic Business Plan. Both initiatives reflect our confidence in Tesco's ability to generate increasing levels of free cash flow, while continuing to expand our global presence through increased market penetration and expansion of our core businesses in new markets," said Julio M. Quintana, President and Chief Executive Officer of Tesco Corporation.
"We believe a balanced program of continuing to reinvest in organic growth projects while pursuing additional bolt-on acquisitions, combined with returning a portion of our free cash flow directly to shareholders through dividends and share buybacks, is the right strategy. Maintaining a strong financial structure will remain a fundamental element of our strategy."These actions taken by our Board reflect our confidence in the long-term value of Tesco's market position and financial performance, and we believe that our current share price presents an attractive investment opportunity for the company," added Quintana.