Pacific Rubiales Energy Corp. (PREC) rose to a two-month high after the oil producer announced a 50 percent dividend increase.
The shares gained 1.1 percent to 40,560 pesos at 12:31 p.m. in Bogota after advancing 4.4 percent to 41,900 pesos, the highest intraday level since since March 14. The Colcap index gained 0.9 percent. Colombian markets were closed yesterday for a holiday.
Bogota-based Pacific Rubiales said in a statement yesterday that it will boost its quarterly dividend to 16.5 U.S. cents from 11 U.S. cents and is developing a formal dividend policy.
The company “is listening and making strong, shareholder-friendly decisions,” said David Neuhauser, a managing director at Northbrook, Illinois-based Livermore Partners Inc., which owns shares in Pacific Rubiales.
Neuhauser said in an e-mailed response to questions that he has talked to the company’s management about cutting the “large disconnect” in the company’s value to the stock price with measures including increasing shareholder cash returns.
The shares have fallen 40 percent from a March 2011 high of 67,260 pesos, compared with a 5.7 percent drop in the Colcap.
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