Investors in oil firm Premier celebrate divi

Premier Oil yesterday said it planned to make a dividend payment – its first since 1998 – after annual profits soared by close to 50 per cent on booming production.

The company, which produces oil and gas in the North Sea, Indonesia and Vietnam, posted a profit after tax of $252 million (£166m) for 2012 compared with the $171m it made the year before and broadly in line with City forecasts.

Premier said confidence in its rising cash flows, which were 66 per cent higher in 2012 at $808m, has led to it proposing paying an initial dividend of 5p per share.

It has not paid out any dividends under the current board due to a period of investment in new projects and exploration.