CALGARY – Inter Pipeline Ltd. says it has raised its monthly dividend by 13 per cent as new projects begin to generate cash flow.
The Calgary-based company said its September dividend, payable in mid-October, will be worth 10.75 cents per share, up from 9.5 cents per share.
On an annualized basis, that amounts to $1.29, up from $1.14.
CEO David Fesyk says it’s the eleventh increase in a row and the single-largest in the company’s history.
It is supported by the continuing strong performance of our underlying business as well as the commencement of cash flow from several projects that recently entered commercial service,” he said.
“We are well positioned to extend our record of profitable growth and regular dividend increases.”
Over the past six months, Inter-Pipeline has begun receiving revenue under contracts with Nova Chemicals, Suncor Energy and Canadian Natural Resources.
It’s also undertaking a $2.6-billion expansion of its Cold Lake and Polaris pipeline systems under commercially secured projects with major oilsands operators.
Inter Pipeline shares, which had been halted before the dividend announcement, rose nearly two per cent to $24.89 on Monday afternoon — a new 52-week high.