AWLCF - Awilco: What Will Happen After Dividend Suspension?

Awilco Drilling (OTCPK:AWLCF) shares have recently suffered a rapid decline following the decision to suspend the dividend, which was announced in the second-quarter report. Since then, the stock has recovered some ground, supported by increasing oil prices. Let’s look at the situation in more detail.

Having paid the outstanding long-term debt in May, Awilco finished the second quarter with $76 million of cash and zero debt. However, the necessity to finance the newbuild rig (or rigs, if the company chooses so) led to dividend suspension. One cannot say that this is a surprising