OTCPK:ICPVF - Post by User
Post by
MOJOJONOon Mar 30, 2020 10:52am
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Post# 30859786
Dividend slashed 72%. Inter Terminal Sale Suspension.
Dividend slashed 72%. Inter Terminal Sale Suspension. Unfortunate, but it was somewhat expected. News release has taken a little bit from every user on here. They probably should have done this cut sooner, but I suppose that would have saved one or two months' worth of dividend expense. DRIP +PDRIP dilution has ceased.
Glad to see management and the board also taking a bite - as have other companies in this environment. CEO Christian Bayle's total share holding value of $17,317,576 in 2019. Base cash Salary $675,000 + Bonus $940,000 in 2018. Base salary cut to: $540,000.
https://www.interpipeline.com/files/pdf/investor-relations/2019/Inter_Pipeline_Info_Circ_2019_Web.pdf
$525MM of savings from the dividend cut alone. That's a little over half of Heartland's capital budget for 2020.
They also noted Inter Terminal Bulk Liquid utilization is running at 95%. I would have expected higher, but at least it is up. Though, also keeping in mind Bulk Liquids is not limited to Oil storage. I noted in previous comment this line of business runs counter cyclical, perhaps one might consider it a form of a hedge for the company.
Heartland partnership negotiation began late 2019.
Environment is fluid with dual COVID 19 and oil conflict. Here's hoping to recovery for the global economy.
- Dividend reduction of 72%
- Suspension of the Premium DividendTM and Dividend Reinvestment Plan
- Suspension of the European Bulk Liquid Storage sales process
- Expense reductions including compensation adjustments for management and the board of directors
- Exploring partnership opportunities on the Heartland Petrochemical Complex
https://www.interpipeline.com/news/news-releases.cfm?newsReleaseAction=view&releaseId=1346