i3 Energy PLC has revealed its plans to cancel its £51.0 million share premium account in order to provide dividends to its shareholders. The oil and gas company currently holds retained earnings of approximately £6.0 million as of May 31.
The objective behind this proposed capital reduction is to augment the retained earnings by an amount equal to the credit of the share premium account. By doing so, i3 Energy aims to enhance its flexibility in considering dividend payments and returning value to its shareholders. However, it must ensure that it possesses sufficient distributable reserves to carry out these actions, as the absence of such reserves would prevent the company from distributing dividends or undertaking the redemption or buy-back of its shares.
In a separate announcement made on Wednesday, i3 Energy disclosed impressive financial results for the year 2022. The company experienced a significant increase in its pretax profit, which more than doubled to £55.8 million compared to the previous year’s figure of £25.7 million. Furthermore, its revenue also saw a substantial jump from £86.8 million to £208.4 million.
Despite these positive financial outcomes, i3 Energy did not declare any dividends. Interested stakeholders can stay informed about the company’s affairs by attending its annual general meeting, scheduled to take place on June 30.
On Thursday, shares in i3 Energy closed at 18.68 pence each in London, marking a 2.4% increase for the day.
