Matson announces share buyback of 3 million shares and increases dividend
US carrier Matson (NYSE: MATX) has ad plans to increase its quarterly dividend and repurchase 3 million shares representing nearly $ 190 million in capital returned to shareholders.
The company’s board of directors on Thursday declared a third quarter dividend of $ 0.30 per common share, which is a 30.4% increase from the previous dividend. The dividend will be paid on September 2, 2021 to all shareholders of record at the close of business on August 5, 2021.
The board also approved a share repurchase totaling three million shares, or approximately seven percent of the outstanding common shares. As of June 24, 2021, the authorization represents approximately $ 190 million in potential buybacks. The shares will be repurchased on the open market from time to time at Matson’s discretion and may be suspended or discontinued at any time.
“We are pleased to announce this return of capital to shareholders,” said Matt Cox, Chairman and CEO of Matson. “The substantial increase in the dividend and the launch of a new share buyback program reflects the confidence of our board of directors in the long-term growth of free cash flow. Last May, we successfully launched a second expedited shipping service from China to the West Coast of the United States, the CLX +, to meet the overwhelming demand for our initial expedited service from China to Long Beach. The success of the CLX + service should continue to be a driver of free cash flow growth. “
Mr. Cox added, “After readjusting our dividend to this new level and making maintenance capital expenditures to support ongoing operations, we will maintain our quality track record while continually seeking to acquire businesses and generate opportunities. organic growth that meet investment criteria. We will be both disciplined and opportunistic in our allocation of capital, including executing share buybacks and aligning dividend decisions with our long-term free cash flow growth. As always, we remain committed to returning excess cash to shareholders as another way to create additional shareholder value over the long term. “
Matson is the leading US carrier in the Pacific, serving Hawaii, Alaska and Guam, as well as other island economies in Micronesia. Matson also operates two high-end expedited services from China in Long Beach, California, provides service to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Dutch Harbor to Asia. .