May 11, 2009 / 10:10 PM / 9 years ago

ShawCor profit climbs, declares special dividend

* Q1 EPS C$0.45/ shr vs C$0.37/shr

* Expects 2009 revenue below 2008 (Adds details)

VANCOUVER, British Columbia, May 11 (Reuters) - Pipeline services firm ShawCor Ltd SCLa.TO reported a higher quarterly profit on Monday as it raised its dividend and said it will make an extra payment to distribute excess cash and mark an anniversary.

The company said would pay a “special recognition dividend” of 26 Canadian cents per Class A share and 23.636 Canadian cents per class B share on May 20 to to shareholders of record as of May 21.

ShawCor said the payment reflects the company’ strong cash balance after earning record profits in 2008, and was being made to celebrate the 40th anniversary of its becoming a publicly traded company.

The quarterly dividend was being increased by 7.7 percent to 7 Canadian cents per class A share and 6.364 Canadian cents per class B share.

ShawCor said it had net earnings of C$31.5 million, or 45 Canadian cents a diluted share, in the first quarter. That compared with a profit of C$26.9 million, or 37 Canadian cents a diluted share, in the same period a year ago.

The company ended the quarter with a business backlog of C$402.4 million, which was down 11.7 percent from the beginning of the quarter, but said it was in the process of bidding on several major projects.

Revenue was up 4.8 percent at C$307.5 million

ShawCor said that while it expects revenue in 2009 to be below that of 2008, it still anticipates its operating margin will be higher because of cost-cutting.

$1=$1.17 Canadian Reporting Allan Dowd, editing by Rob Wilson

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