The Petrofac Group's dividend policy targets a dividend cover over the long term of between 2.0x and 3.0x business performance net profit. In line with this policy, the Board is proposing a final dividend of 25.3 cents per share (2018: 25.3 cents). The final dividend will be paid on 22 May 2020 to eligible shareholders on the register at 24 April 2020 (the 'record date'). Shareholders who have not elected to receive dividends in US dollars will receive a sterling equivalent. Shareholders can elect by close of business on the record date to change their dividend currency election. Together with the interim dividend of 12.7 cents per share (2018: 12.7 cents), this gives a total dividend for the year of 38.0 cents per share (2018: 38.0 cents).
The Petrofac Board takes a long-term view of its dividend and recognises the importance of dividends to shareholders. It will take into account a range of factors when setting any future dividend, including the Company's long-term dividend policy, historical performance, its long-term outlook, free cash flow and the position of its balance sheet. Consequently, in a year of transition, it currently expects to maintain the dividend in 2020 in anticipation of a return to growth.
Other financial highlights include:
Solid operational performance in all our businesses
Business performance net profit down 22% to US$276 million
Reported net profit of US$73 million post impairments and exceptional items
New order intake of US$3.2 billion; backlog of US$7.4 billion at 31 December 2019
Net cash of US$15 million
