Freeport announces increase in dividend to $0.80 per share
Thursday, October 16 2003 - 12:14 AM WIB
In a press release on Wednesday, Freeport announced that its Board of Directors has authorized an increase in its annual common stock dividend from $0.36 per share to $0.80 per share. The dividend will be payable quarterly ($0.20 per share) and the increase will be reflected beginning with the February 2004 dividend payment.
Freeport also announced that its Board of Directors approved a new open market share purchase program authorizing open market purchases totaling 20 million shares. The timing of future purchases is dependent upon many factors including the company's operating results, cash flow and financial position, the market price of the common shares and general economic and market conditions.
James R. Moffett, Chairman and Chief Executive Officer of Freeport-McMoran, and Richard C. Adkerson, President and Chief Financial Officer, said, "Our recent Board actions to increase our common dividend and authorize an expanded share repurchase program will allow us to return a portion of our free cash flow to shareholders while we continue to reduce our debt. These measures are consistent with our ability to generate significant cash flows in excess of our capital expenditures and debt service requirements."
Adkerson said last month that the company was mulling ways to use its sizable cash flow.
Freeport expects to generate US$600 million in operating cash flow in 2003, minus $160 million in capital expenditures, yielding $440 million in free cash flow.
Last week, PT Freeport Indonesia, a unit of Freeport, suspended part of its operations at an open-pit Grasberg gold and copper mine in Papua province after a landslide killed two workers and injured five, while six were missing.
Shares of Freeport closed Tuesday trade on the New York Stock Exchange at $37.14, or down 63 U.S. cents. (*)