New Orleans-based offshore service vessel operator Tidewater Inc. announced yesterday that it was suspending its quarterly dividend and common stock repurchase program.
The moves are part of a broader plan of reducing costs and capital spending in order to preserve liquidity in a tough oilfield services market that has been hit hard by the steep drop in oil prices and cuts in global exploration and production spending.
Tidewater said that suspending the 25 cents per share quarterly dividend would save about $47 million a year. Also, no shares have been repurchased by the company under its share repurchase program this fiscal year and the remaining $100 million authorized under the current program was set to expire on June 30.
It’s expected that Tidewater will discuss the moves in more detail during its fiscal third-quarter earnings call on Feb. 3.