January 10 ,2024
Scana divests well control equipment and will propose an extraordinary dividend payment.
PSW Technology has signed a contract to divest well control equipment to an international oil and gas company. The transaction is expected to be conducted through a cash settlement and is of substantial value (2), with the sales amount at the higher end of the value range. The delivery of the equipment is expected to take place in Q1 2024, and the profit will be recognized upon delivery of the equipment.
Assuming the transaction is completed, the Board of Directors of Scana ASA will convene an extraordinary general meeting proposing the distribution of extraordinary dividends of NOK 0.05 per share. The remaining proceeds from the sale will be considered for repayment of up to NOK 50million of its long-term debt and investments in accretive growth opportunities.
“With this contract, PSW Technology do not only generate free cash flow but also has the opportunity to further develop similar well control equipment in our possession, hence expanding our market position,” says Richard Cornell, Managing Director in PSW Technology.
“The transaction is a continuation of unlocking cash potential in our balance sheet, as previously demonstrated by the sale of Scana Korea. We are pleased that we can both enhance our liquidity and distribute funds to our shareholders and in addition strengthen our delivery capabilities in well control services,” says Pål Selvik, CEO in Scana.
(1) A sizeable contract is defined to be between NOK 20 million and NOK 50 million.
(2) A substantial contract is between NOK 50 million and NOK 150 million.
(3) A large contract is over NOK 150 million.
For more information, please contact:
Pål Selvik, Chief Executive Officer, Scana ASA, +47 970 46 502
Richard Cornell, Managing Director, PSW Technology AS, +47 952 31 652