OKOTOKS, Alta. - Oilfield services and trucking company Mullen Group Ltd. (TSX:MTL) increased its annual dividend Tuesday to $1.20 per share from $1 and said it would start paying it monthly instead of quarterly.

The increase came as the company said it would spend $80 million on its capital budget for the year, down about $23 million from its actual capital spending in 2012.

"While we expect 2013 to be a challenging year with little opportunity to grow our business due to economic and industry conditions, Mullen Group will continue to generate significant cash from operations," chairman and chief executive Murray Mullen said.

The company plans to spend about $55 million on its oilfield services business and about $25 million on its trucking and logistics business.

Mullen Group said the majority of the money will be used to buy new trucks, trailers and specialized equipment.

Shares in the company, which announced the dividend increase and capital plan after the close of markets, closed up 23 cents at $22.18 on the Toronto Stock Exchange on Tuesday.

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