Pharos Energy PLC has announced the declaration and payment of an interim dividend for the financial year ending December 31, 2023. The dividend will be 0.33 pence per ordinary share, amounting to approximately $1.8 million. The dividend will be payable in January 2024. The company follows a sustainable regular dividend policy, which aims to return at least 10% of Operating Cash Flow (OCF) to shareholders each year in two tranches. The interim dividend represents around 33% of the previous year's final dividend. The key dates for the interim dividend are as follows: ex-dividend date on December 21, 2023, record date on December 22, 2023, and payment date on January 24, 2024.
Pharos Energy also announced the continuation of its share buyback program. The company expects to complete the first extension of the program by the end of the year. As of December 5, 2023, the company has repurchased a total of 19.8 million shares at an average price of 23.7 pence. The Board believes that the company's shares are still trading at a material discount to their underlying net asset value and intends to continue the share buyback program in 2024 by committing a further $3 million. The second extension of the program is expected to commence after the completion of the first extension. The shares purchased under the program will be cancelled.
Jann Brown, CEO of Pharos Energy, commented on the announcements, stating, "We are delighted to announce the interim payment for 2023 under our dividend policy, which underpins our commitment to regular shareholder returns. In addition, the Board believes that the Company's shares continue to trade at a material discount to their underlying net asset value and has committed a further $3m to the share buyback program." The company aims to continue delivering returns in 2024 and beyond, supported by its prudent approach to financial management and capital allocation.