WEQ CANCELS MONTHLY DIVIDEND!!!. WesternOne Announces Update to Capital Allocation Strategy and Provides 2015 Outlook10 hours ago by PR Newswire WesternOne Inc. ("WesternOne" or the "Company") (Toronto Stock Exchange: WEQ, WEQ.DB and WEQ.DB.C) today announced an update to its capital allocation strategy following a meeting of its Board of Directors. This new strategy is discussed below in the context of WesternOne's 2015 outlook and is intended to provide a prudent and conservative approach to enhancing the Company's financial flexibility to deploy capital.
Update to Capital Allocation Strategy
The rapid and unexpected decline in global crude oil prices in recent months has impacted capital spending budgets among many participants in the oil and gas and related support industries, which has contributed to a softer economic environment for companies throughout North America.
Although a majority of WesternOne's revenues is not directly tied to the oil and gas sector, recent forecasts for a potentially protracted period of lower crude oil prices have created lingering uncertainty across many business areas in which WesternOne operates, including the construction and infrastructure sector in Western Canada and industries which support the shale oil and gas markets of the continental USA.
Consequently, WesternOne believes it is fiscally prudent to enact immediate changes to its 2015 capital allocation strategy, which include suspending the Company's monthly dividend in order to maintain its financial flexibility to deploy capital. The Premium DividendTM and Dividend Reinvestment Plan will therefore also be suspended.
Future decisions over reinstating a dividend will be based on a number of factors that will be carefully weighed, including but not limited to, evolving market conditions and the financial and operational performance of the Company and each of its business platforms.