Transocean Will Reinstate Its Dividend - Asahi Associates.

Online, March 26, 2013 (Newswire.com) - Asahi Associates reportedly revealed in a recent investors meeting that Transocean would reinstate its dividend after pressure from shareholders led by billionaire Carl Icahn.

A spokesperson for Transocean confirmed that they plan to payout a $2.24 per share annual dividend, amounting to around $800 million in total, which will be paid in installments from the beginning of the third quarter of this year until the end of the first quarter of next year. The largest offshore drilling contractor in the world also plans to retire a further $1 billion in debt by the same time.

Asahi Associates are believed to have remarked that the Swiss based company halted its dividend payments last year in an action to maintain a flexible and strong balance sheet and to defend its investment grade credit rating. Transocean had approximately $5.13 billion in cash reserves according to its published end of year report.

Billionaire Icahn is the largest single shareholder in Transocean, with a 5.6 percent stake, and is expected to call for a $4 dividend at the firm's annual meeting, as well as proposing three new board members. Prior to ceasing their dividend last year, Transocean paid an annual dividend of $3.16 per share.

Asahi Associates allegedly noted that Transocean is expected to have net earnings of $4.81 per share for the year, growing to $6.05 by next year; however, uncertainties remain over their liabilities related to the Macondo well explosion.

Asahi Associates apparently relayed a statement from a Transocean spokesperson who publicly stated that Transocean intend to stick to their target of reducing debt to within the $7 billion to $9 billion range, from $12.5 billion at the end of last year.