HUNTINGTON, W.Va. - Energy Services of America (OTC:ESOA) Corporation (NASDAQ: ESOA), a contractor and service company operating in the mid-Atlantic and Central United States, has announced the initiation of a quarterly cash dividend. The company's board of directors declared a dividend of $0.03 per common share, scheduled for distribution on January 2, 2025, to shareholders of record as of December 13, 2024.
Douglas Reynolds, President of Energy Services, stated that this move reflects the board's intention to demonstrate their appreciation and commitment to shareholders. The company aims to increase the annual cash dividend from last year's total of $0.06 to $0.12, starting with this quarterly dividend initiative.
Energy Services, headquartered in Huntington, West Virginia, employs over 1,200 individuals and offers its services to a diverse clientele in the natural gas, petroleum, water distribution, automotive, chemical, and power industries. The company emphasizes safety, quality, and production as its core values.
The press release also contained forward-looking statements, which are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected. These statements are identified by terms such as "believes," "anticipates," "intends," and "expects," and are based on current expectations and assumptions that are subject to change. The company cautions investors not to place undue reliance on these forward-looking statements and does not commit to updating them in light of new information or future events.
This dividend announcement is based on a press release statement from Energy Services of America Corporation.
"In other recent news, Energy Services of America Corporation has made significant strides in its business operations. The company recently announced the acquisition of Tribute Contracting & Consultants, LLC, an underground utility contractor with operations in Ohio, Kentucky, and West Virginia, for $24 million. This acquisition, which includes $22 million in cash and $2 million in common stock, is expected to be finalized in early December.
The founders of Tribute, Tom Enyart and Todd Harrah, will maintain their current roles within the new subsidiary, Tribute Acquisition Company. This acquisition aligns with Energy Services' strategy to expand its water distribution capabilities.
In another development, Energy Services reported the resignation of Mr. Samuel G. Kapourales from his role as a director. The company clarified that his departure did not result from any disagreements with the company's management, and no immediate operational or strategic changes are anticipated following his departure. These are the latest developments in the company's operations, providing investors with a glimpse into recent events."
InvestingPro Insights
Energy Services of America Corporation's (NASDAQ: ESOA) decision to initiate a quarterly cash dividend aligns with its strong financial performance and market position. According to InvestingPro data, ESOA has demonstrated impressive growth with a revenue increase of 31.56% in the last twelve months as of Q3 2024, reaching $352.07 million. This robust top-line growth supports the company's ability to return value to shareholders through dividends.
InvestingPro Tips highlight that ESOA has been a high performer, with a strong return over the last year and trading near its 52-week high. The stock's total return over the past year stands at an remarkable 256.75%, indicating significant investor confidence in the company's prospects.
Despite the positive momentum, investors should note that ESOA is trading at a high Price / Book multiple of 4.66, which may suggest the stock is relatively expensive compared to its book value. This valuation metric is particularly relevant given the company's recent decision to initiate dividends, as it may impact future capital allocation strategies.
For those interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for ESOA, providing deeper insights into the company's financial health and market position.
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