Diamond Offshore Boosts Dividend

The oil driller will also consider a special one-time payout.
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Diamond Offshore Drilling

(DO) - Get Report

doubled its quarterly dividend and said it would consider an additional special payout.

The Houston-based oil drilling services company will pay 12.5 cents on its regular dividend, payable Sept. 1 to holders of record Aug. 1. "The increased dividend reflects the strength of the Company's offshore drilling business as demonstrated by the Company's previously reported success in securing term contracts at favorable rates," the company said, adding that it "believes that its financial position is strong and its earnings outlook positive."

Diamond also said its board would consider an additional dividend in the first quarter of 2006. "The Company believes that its financial position is strong and its earnings outlook positive," Diamond said. "The amount of the special cash dividend, if any, will be determined by the Board based on the Company's financial position, earnings outlook, capital spending plans and other factors which the Board determines are relevant."

On Monday, Diamond rose 15 cents to $52.25.