Todco Plans Special Payout

The oil driller swings to a second-quarter profit and sets a $1 dividend.
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Todco

(THE)

swung to a second-quarter profit and declared a $1 special dividend.

The Houston-based oil services offshoot of giant

Transocean

(RIG) - Get Report

earned $11 million, or 18 cents a share, for the quarter ended June 30. That reverses the year-ago loss of $7.4 million, or 12 cents a share. Revenue surged to $131 million from $81 million a year earlier.

Todco cited improved utilizations and dayrates in its domestic operations.

Todco, which says it the has largest rig fleet in the shallow water of the U.S. Gulf of Mexico and along the U.S. Gulf Coast, said the special dividend will be payable Aug. 25 to shareholders of record Aug. 15.

"With our growing excess cash position, we have continued to evaluate both internal and external growth opportunities," CEO Jan Rask said. "To date, the external opportunities do not compare favorably with the company's internal rig reactivation opportunities. As such, we have concluded that a special dividend is warranted at this time. After this dividend, we continue to have the financial flexibility to pursue growth opportunities and/or additional special dividends."

Early Thursday, Todco fell 69 cents to $31.56.